Citi: Bank of Korea Expected to Hike Rates Next Week, Another 25 bps Increase Each Quarter in the Second Half
BlockBeats News, July 9th, Citigroup economist Jin-Wook Kim stated that the Bank of Korea is likely to imply a gradual pace of interest rate hikes after raising the benchmark rate from 2.50% to 2.75% at next week's policy meeting.
He expects the Bank of Korea Governor to suggest a 25 basis points rate hike each quarter in the second half of 2026, while maintaining a data-dependent stance for the first half of 2027 without providing specific guidance. Citigroup anticipates the Bank of Korea to hike rates in July and October this year, and again in January and April next year.
Kim added that the Bank of Korea may also emphasize the upside risks to its 2026 growth forecast, citing the upward revision in first-quarter growth and the resilience of economic activity in the second quarter.
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