Why the AI Chip Boom Just Forced South Korea to Raise Interest Rates

Source: International Business Times

A man walks past an advertisement showing a bank's interest rate in Seoul in Seoul on July 16, 2026. South Korea's central bank hiked interest rates on July 16, for the first time in more than three years and indicated more to come amid robust economic growth fuelled by the AI chip boom, persistent inflation and risks to financial stability. Jung Yeon-je / AFP via Getty Images South Korea's central bank raised interest rates for the first time in three and a half years on Thursday, July 16 — and made clear the move was only the beginning.