ⓒYONHAP News

The Bank of Korea(BOK) has raised its benchmark interest rate by 50 basis points to three percent in a bid to tame inflation.

The central bank conducted another "big step" at its monetary committee meeting on Wednesday, boosting rates to three percent for the first time in a decade since October 2012.

With the latest hike, the BOK has raised rates five consecutive times this year. It also marks the second time the central bank raised the key rate by half a percentage point, following the previous one in July. 

The central bank is seeking to contain soaring prices and fluctuations in the financial market. 

Consumer prices remain high with a growth of five-point-six percent in September, although the growth pace slowed for the second straight month.

The central bank's monetary policy body cited inflation and the Korean won’s weakness against the U.S. dollar for its decision to implement the zero-point-five percent hike.

After its decision to raise the benchmark rate to three percent, the BOK rate-setting Monetary Policy Board called for a heightened response amid continued inflation, exacerbated by the weakness in the local currency, and related risks.

The committee forecast inflation to remain in the five- to six-percent range for some time, warning of a significant upward risk stemming from the exchange rate and reduced output by major oil-producing states.

The policy board also projected a greater slowdown in economic growth, missing its two-point-one-percent forecast for next year.

It also emphasized a need to maintain its tighter monetary policy, hinting at further hikes in the future.