South Korea: BoK expected to raise rates by 25 bps this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank of Korea (BoK) could hike its policy rate by 25 bps at its meeting on July 13.

Key Quotes

“The BOK’s inflation forecasts indicate an elevated inflation view into 2023, strengthening the case for further monetary policy tightening.”

“We have thus revised our forecast and now expect the central bank to hike its base rate by 25bps at each of the three subsequent meetings in Jul, Aug and Oct before pausing at its last meeting this year in Nov, at 2.50%. More aggressive tightening is not ruled out if inflation continues to come in above expectation in Jun.”