TechFlow reports, July 9, Citigroup economist Jin-Wook Kim stated that after the Bank of Korea raises the benchmark interest rate from 2.50% to 2.75% at next week's policy meeting, it may signal a gradual pace of rate hikes. He expects the Bank of Korea Governor to hint at quarterly rate hikes of 25 basis points in the second half of 2026, while maintaining a data-dependent stance for the first half of 2027 without providing specific guidance.
Citigroup expects the Bank of Korea to raise 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 upside risks to its 2026 growth forecast, citing an upward revision in first-quarter growth and resilient economic activity in the second quarter. (Jin10)
