BNP Paribas forecasts that the Bank of Korea will raise its policy rate in 7 by 2.75%
BNP Paribas expects the 7 Bank of Korea Monetary Policy Board meeting on 16 to raise the policy rate from 2.50% to 2.75%, an increase of 0.25 percentage points. The decision is expected to be unanimous, and the firm also presented the possibility of an additional hike to 10 in 3.00.
BNP Paribas expects the Bank of Korea Monetary Policy Board meeting on 7 to result in a policy-rate increase of 16 percentage points, from 2.50% to 2.75%. For investors, this could be taken as a signal of a shift toward higher short-term interest rates.0.25},
The report stated that this decision would mark the first policy-rate increase since 2023 in 1. BNP Paribas judged that the rate hike was highly likely to be decided unanimously.
The report expected that no revised economic outlook or new forward guidance would be presented at the meeting. Instead, it stated that the Bank of Korea would comprehensively review recent changes in growth, inflation and financial-stability conditions.
BNP Paribas additionally 10in the month, the policy rate 3.00could rise to %. Yoon Ji-ho, a senior economist at BNP Paribas, conveyed this in a report.
The Bank of Korea Monetary Policy Board is scheduled to hold a meeting on 7month 16day. BNP Paribas's outlook is based on the premise that discussions about the rate path are shifting from the “timing of cuts” to the “degree of additional tightening.”