South Korea's central bank is expected to raise interest rates again this week, with the economy and inflation remaining strong
2026-08-26 06:34:25
According to CoinMeta, the policy decision of the Bank of Korea this week may not be finalized until the last moment. Just over half of the economists expect that, given that economic growth is stronger than expected and potential inflation persists, the authorities will raise interest rates for the second consecutive time to maintain a proactive policy stance. Among the 22 economists surveyed, 14 predict that the Bank of Korea will raise the benchmark interest rate by 0.25 percentage points to 3% on Thursday, while 8 expect the authorities to keep the interest rate unchanged. In addition, the Bank of Korea will release its latest forecasts, which are expected to support further tightening of monetary policy. Given that exports and domestic demand are performing better than expected, the bank's forecast for economic growth in 2026 is expected to be significantly raised from 2.6% in May. Inflation forecasts may also be raised from the 2.7% estimated in May, reflecting rising oil prices, currency depreciation, and signs of investment and consumption driven by the semiconductor boom. If the bank keeps the interest rate unchanged, investors are likely to set their expectations for a rate hike in October.
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Source:Jin10 Data
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