Citi Expects South Korea's Central Bank to Raise Rate from 2.50% to 2.75% Next Week, Signal 25bp Quarterly Hikes in H2 2026

According to Citi economist Jin-Wook Kim, South Korea's central bank is expected to raise its benchmark rate from 2.50% to 2.75% at next week's policy meeting, then signal a gradual hiking pace of 25 basis points per quarter throughout the second half of 2026. Citi forecasts rate increases in July and October this year, followed by additional hikes in January and April 2027. Kim noted the central bank may also emphasize upside risks to its 2026 growth forecast, citing improved first-quarter growth and resilient second-quarter economic activity.
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