BOK, growth forecast 2.5~2.6% increase likely; mortgage rates’ lower bound 5enters the % range
The Bank of Korea is increasingly likely to raise its growth forecast to 28 in its revised outlook due on 2.5~2.6%. The base rate is expected to remain unchanged at 2.50% a year, while the lower bound of fixed mortgage rates has exceeded 5% amid rising long-term government bond yields.
The Bank of Korea will release its revised economic outlook on 28. The outlook includes consideration of raising this year’s real gross domestic product growth forecast to 2.5~2.6%. The BOK cited improving conditions in the semiconductor industry as a basis for its upward revision.
The Bank of Korea Monetary Policy Board is leaning toward keeping the current base rate of 2.50% a year unchanged. Some members have expressed hawkish views, prompting discussion of the possibility of signals about further rate moves this year. The rate decision is scheduled to be announced on 28.
In the U.S. market, the 30-year Treasury yield rose to 5.2%. It was reported that ultra-long-term yields reached their highest level in nearly 20 years. The resulting impact was reported to have increased volatility in global bond and stock markets.
In South Korea, the lower end of fixed mortgage rates at major banks has successively 5%3 years 7 months, the highest level in that period. It has been reported that some banks adjusted rates on new fixed-rate products.
Next week (25–29 days), the Bank of Korea is scheduled to announce its rate decision and revised forecasts. The wording and figures at the time of the announcement are expected to shape short-term market trends. Related indicator releases and changes in bank lending rates should be monitored together.
Sources: 연합뉴스 경제
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