0426 GMT - The Bank of Korea could deliver three more 25bp rate hikes through 2Q 2027 after Thursday's increase to 2.75%, Deutsche Bank's Juliana Lee says. The economist expects BOK to bring its policy rate to 3.50%, citing the July statement's explicit reference to maintaining "a policy stance consistent with further rate hikes" amid stronger-than-expected economic growth and persistent above-target inflation. Elevated foreign-exchange volatility, faster household debt growth and renewed housing price pressure also support Deutsche Bank's forecast that the BOK would raise the policy rate further, Lee adds. (kwanwoo.jun@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 00:26 ET (04:26 GMT)
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