Bank of America and BNP Paribas forecast the Bank of Korea to 7month16day base rate 0.25percentage-point increase
Bank of America and BNP Paribas 7month 16day Bank of Korea Monetary Policy Board meeting to raise the base rate by 25basis points (0.25percentage points). BNP Paribas expects the rate to rise from the current annual 2.50% to 2.75%, while leaving open the possibility of further increases, and said it could reach 10month 3.00%.
Bank of America and BNP Paribas expect the Bank of Korea Monetary Policy Board, meeting on 7month 16day, to raise the base rate by 25basis points (0.25percentage points).
BNP Paribas forecast that, following this increase, the base rate would rise from the current annual 2.50% to 2.75%. BNP Paribas expects the decision to be highly likely to be unanimous.
In a report dated 7month 10day, Bank of America expected an increase of the same 25basis points, viewing the measure as the start of the Bank of Korea’s gradual monetary tightening cycle. Bank of America cited inflationary pressures and financial market volatility as the background to the increase.
BNP Paribas expected that no revised economic outlook or new forward guidance would be presented at the meeting. In the report, Yoon Ji-ho, a senior economist at BNP Paribas, noted that the focus of the future interest-rate path had shifted from the “timing of cuts” to the “intensity of additional tightening.”
BNP Paribas forecast that the policy rate could reach in 10month 3.00%.
The related reports were released respectively in 7month 9–10day. The Bank of Korea’s Monetary Policy Board is scheduled to make its decision in 2026year 7month 16day, and the decision statement and minutes will be released immediately after the meeting.