DBS Group Analysis economist Ma Tieying expects the Financial institution of Korea (BoK) to maintain its base charge at 2.50% on the Could 28 assembly, however now initiatives a single 25 bps hike in 3Q 2026 to 2.75%. The report cites firmer inflation, rising PPI and inflation expectations, but in addition Ok‑formed development and sectoral weak point as constraints on aggressive tightening.
DBS flags one 3Q charge hike
“Following our earlier improve to 2026 GDP and inflation forecasts, we now additionally revise our rate of interest outlook, calling for one 25bps hike in 3Q.”
“Current knowledge assist the case for the Financial institution of Korea to maintain the bottom charge unchanged at 2.50% on the Could 28 assembly.”
“Trying forward, we see a rising chance of a 25bps charge hike in 3Q, which might deliver the bottom charge to 2.75%.”
“Inflation is predicted to select up extra noticeably in Could, with headline CPI probably reaching 3% and core CPI starting to replicate some pass-through.”
“As second-round inflation pressures begin to construct, the BOK is more likely to undertake a extra vigilant stance within the coming months.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
