Bank of Korea Likely to Raise Rates Further

Dow Jones07-16 09:49

0149 GMT - The Bank of Korea could raise interest rates further after Thursday's rate hike, Capital Economics' Gareth Leather says. The economist says "there are good reasons to expect further tightening over the coming months" beyond the recent jump in headline consumer inflation. More worrying for the BOK is the rise in core inflation to 2.5%, up from 2.0% at the start of 2026, Leather notes. He also cites the financial stability risks posed by rising property prices as another reason to keep interest rates higher. The country's economy is well placed to cope with higher interest rates, as its exports are booming, he adds. (kwanwoo.jun@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2026 21:49 ET (01:49 GMT)

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