# BOK Governor Signals More Hikes Ahead After Rate Rises to 3 Percent > Governor Shin Hyun-song called the back-to-back rate increase a departure from usual practice, as the Bank of Korea sharply raised its growth forecasts and warned that record household debt leaves little room for complacency on inflation. - Source: Korea First - Canonical URL: https://koreafirst.tv/article/bok-governor-signals-more-hikes-ahead-after-rate-rises-to-3-percent - Author: Korea First Staff - Section: Money - Published: 2026-08-27T14:25:28.594Z - Updated: 2026-08-27T14:25:28.594Z - Tags: Bank of Korea, Shin Hyun-song, interest rate, household debt, inflation, growth forecast - Korean edition: https://koreafirst.tv/ko/article/bok-governor-signals-more-hikes-ahead-after-rate-rises-to-3-percent --- Bank of Korea Governor Shin Hyun-song used Thursday's press conference to make clear that the central bank's second consecutive rate hike was not business as usual, describing the back-to-back move as a departure from the usual practice that has sent a strong signal to the market. The board raised the benchmark rate by a quarter point to 3 percent, with six members in favor and one dissenting, returning the policy rate to the 3 percent range for the first time since November 2024. Shin framed the decision as a deliberate act of preemption. By acting preemptively before price increases spread further, he said, the economy can avoid bearing greater costs later. ## A Growth Forecast Revised Sharply Higher The rate decision came alongside a striking upgrade to the bank's economic outlook. The BOK raised its 2026 growth forecast to 3.3 percent from 2.6 percent, its largest upward revision since May 2021, and lifted its 2027 forecast to 2.9 percent from 2.1 percent. Officials attributed the jump to strong semiconductor exports and a gradual recovery in domestic consumption, the same combination of forces that has left small businesses feeling squeezed even as headline growth accelerates. ## More Hikes on the Table Shin signaled that Thursday's move is unlikely to be the last. The board's own rate projections point to a median policy rate of 3.25 percent over the next six months, and the governor said upcoming policy meetings will be live meetings, meaning each one carries a real chance of another move depending on how conditions develop. That marks a shift from a calendar where hikes could be anticipated well in advance toward one where the central bank is keeping its options open meeting by meeting. ## The Debt Overhang Shaping the Decision Behind the preemptive language sits a specific worry: household debt topped 2,000 trillion won in the second quarter of 2026, a record high that leaves the central bank wary of letting borrowing costs stay too low for too long. Add in persistent inflationary pressure linked to uncertainty in the Middle East, and the BOK's calculus is that the risk of moving too slowly now outweighs the risk of moving too fast, even with growth already running hotter than expected. --- Originally published by Korea First. Free to cite with attribution and a link to https://koreafirst.tv/article/bok-governor-signals-more-hikes-ahead-after-rate-rises-to-3-percent.