DBS economists Taimur Baig and Radhika Rao expect the Bank of Korea (BoK) to raise its base rate by 25bps to 3.00% at the August meeting, alongside upgraded Gross Domestic Product (GDP) and Consumer Price Index (CPI) forecasts. They highlight stronger-than-expected first-half growth, persistent core inflation and rising housing prices, but also note a hawkish hold is possible as financial conditions tighten and South Korean Won (KRW) appreciates.
Rate hike with inflation concerns
“We expect the Bank of Korea to raise the base rate by a further 25bps to 3.00% at this meeting, alongside an upgrade to its annual macroeconomic forecasts.”
“There is…
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