Analysts Forecast BOK to Hold Benchmark Rate Unchanged
Economic experts predict the Bank of Korea will maintain its benchmark interest rate.
Economic experts predict the Bank of Korea will maintain its benchmark interest rate.
Local economic analysts expect the Bank of Korea (BOK) to keep its benchmark interest rate steady at 3% during its upcoming meeting this Thursday. This decision comes amid ongoing concerns regarding economic stability.
A recent survey conducted by Yonhap News Agency among six economists indicated that all participants believe the BOK will pause any rate hikes for now. They emphasized the need for the central bank to evaluate the impact of previous increases made in July and August.
Joo Won, a senior researcher at Hyundai Research Institute, noted, "Three consecutive rate hikes could place a significant burden on households and domestic companies." He suggested that the BOK is likely to take a cautious approach this time.
In addition, Park Seok-gil from JPMorgan Korea highlighted the importance of closely monitoring economic indicators, especially with core inflation rates showing signs of stabilization. He pointed out that the Korean won's recent appreciation has helped mitigate the effects of rising oil prices.
Analysts also predict that the BOK may consider raising rates in November, as inflation pressures remain above the target level, driven by strong growth in the semiconductor sector. Ahn Ye-ha from Kiwoom Securities stated, "The trend of interest rate hikes is likely to continue due to ongoing inflationary pressures."
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