Bank of Korea

The Federal Reserve increased its benchmark federal funds rate by 25 basis points to a target range of 3.75% to 4.00%. This marks the first rate hike since 2023. Markets and currencies reacted as investors noted the move signals ongoing monetary tightening.

South Korea's public sector deficit reached 83.1 trillion won in 2025, marking the sixth consecutive year of deficit. The Bank of Korea noted this is the largest deficit recorded since 2007, driven by increased government spending on health insurance and private transfer payments.