South Korea: BoK could lift the policy rate to 3.0% by year end – UOB

Economist at UOB Group Lee Sue Ann notes the BoJ could hike rates by 25 bps at its next meetings in August, October and November.

Key Quotes

“On the assumption that inflation will peak in 2H22, we maintain our forecast for the BoK to revert to 25bps hike for the remaining meetings this year in Aug, Oct and Nov to bring the benchmark base rate to 3.00% by year-end.”

“With an expected moderation in inflation rate next year, the BOK is likely to stay on hold thereafter, or even begin to trim interest rate should growth risks mount.”