Deutsche Bank Predicts Potential for Three Additional Rate Hikes from South Korea's Central Bank

Deep News12:30

According to Juliana Lee of Deutsche Bank AG, following the rate increase to 2.75% on Thursday, the Bank of Korea may implement three more 25-basis-point interest rate hikes by the end of the second quarter of 2027. The economist forecasts that the central bank will raise its policy rate to 3.50%, citing the July policy statement's explicit mention of maintaining a "policy stance consistent with further interest rate hikes" amid stronger-than-expected economic growth and persistently high inflation above the target.

Lee added that heightened foreign exchange volatility, accelerated household debt growth, and renewed housing price pressures also support Deutsche Bank AG's prediction for further policy rate increases by the Bank of Korea.

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