Bank of Korea divided as four of six economists see August rate hold

Markets are split ahead of the Bank of Korea’s Aug. 27 benchmark-rate decision, with four of six economists surveyed by Yonhap News on Aug. 23 expecting the Monetary Policy Board to hold rates and two forecasting a 0.25 percentage-point increase. A pause would allow officials to assess July’s hike amid easing consumer inflation and a stable won-dollar exchange rate, but economists do not view it as the end of tightening. Additional increases are widely expected in the fourth quarter or the first quarter of next year, with projected terminal rates ranging from 3.25% to 3.50%. The decision comes alongside U.S. July core personal consumption expenditures inflation, preliminary second-quarter GDP and initial jobless claims data scheduled for Aug. 26-27, which will provide signals on Federal Reserve policy, global growth and financial-market conditions. The meeting’s dissenting votes, housing-market conditions and the Federal Reserve’s expected September hold will be closely watched.

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