Bank of Korea to Hold Rates with Hikes Expected in Q3
The Bank of Korea is projected to maintain its base rate at 2.50 percent this Thursday as inflation pressures from the Iran war mount. Most economists now anticipate at least one rate hike by September following a strong first-quarter growth performance and rising energy costs.
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South Korea will likely hold its base rate at 2.50% during its policy review on May 28. All except two of 32 economists polled by Reuters forecast a hold, while a majority now expect hikes to begin by September. Rising inflation and energy costs linked to the conflict in Iran are forcing a hawkish shift in policy expectations, with the outlier economists predicting a rate rise.
