South Korea’s bond market is leaning toward the Bank of Korea holding its base rate at the Monetary Policy Board meeting scheduled for the 27th of this month. In a survey of 100 bond professionals conducted from the 13th to the 19th, 79% expected a hold and 20% forecast a hike, compared with 66% expecting an increase in the previous month’s survey. The Korea Financial Investment Association (KOFIA) said the composite Bond Market Survey Index (BMSI), a gauge of market sentiment, rose to 89.5 from 86.2. The interest rate outlook BMSI climbed to 99.0 from 84.0 as expectations for rate increases fell to 16% from 30% and steady-rate expectations rose to 69% from 56%. An improved growth outlook, inflation pressures and rising household debt support a hike, while the won’s recent decline and higher market interest rates support a hold. Investors are also watching the Jackson Hole meeting later this month and the U.S. Federal Open Market Committee (FOMC) meeting in September. The inflation BMSI slipped to 97.0 from 99.0, while the exchange rate BMSI fell to 99.0 from 129.0 amid Middle East geopolitical tensions, higher import-cost concerns and uncertainty over U.S.-Korea trade negotiations.