South Korea's central bank raised its policy rate by 25 basis points on Thursday.
Bank of Korea (BOK) Governor Shin Hyun-song and other monetary policymakers decided to increase the benchmark seven-day repurchase rate to 2.75 percent from 2.50 percent.
The rate increase, which was in line with market expectations, marked the BOK's first shift back toward monetary tightening since January 2023.
According to the Korea Financial Investment Association's poll of 100 fixed-income experts, 66 percent predicted the rate hike this month.
The central bank has cut its key rate by a quarter percentage point in October and November of 2024, and in February and May of 2025, before making a rate freeze decision for an eighth consecutive time through May this year.
ROK raises policy rate by 25 bps to 2.75 pct
China's National Meteorological Center on Thursday renewed a yellow alert for high temperatures as parts of the country are set to embrace temperatures of over 40 degrees Celsius.
Temperatures above 35 degrees Celsius are forecast across large parts of central and eastern China, including Henan, Anhui, Shanghai and parts of Jiangsu and Zhejiang. The heat is also expected to affect the Sichuan Basin in southwest China, parts of Jiangxi in east China, Hubei and Hunan in central China, and Xinjiang in the northwest.
Some areas could record temperatures as high as 37 to 39 degrees Celsius. Temperatures in parts of eastern Sichuan, western Chongqing in southwest China, northern Xinjiang and the Turpan Basin may exceed 40 degrees Celsius, the meteorological center said.
The yellow alert is the middle level in the National Meteorological Center's three-tier heat warning system with red being the highest.
The forecaster advised the public to take precautions against heatstroke and other heat-related illnesses. The areas affected by high temperatures in southern China are expected to shrink from Friday.
China renews heat alert as parts of country expect temperatures over 40 degrees Celsius
