Citi Expects BOK to Raise Benchmark Rate Again in August
Summary
- Citibank Korea said it expects the Bank of Korea to raise the benchmark interest rate again at its August Monetary Policy Board meeting.
- Kim Jin-wook, Citibank Korea's chief economist, said he expects a 0.25 percentage-point increase in the benchmark interest rate on Aug. 27 if second-quarter gross domestic product (GDP) remains strong and demand-side inflation persists.
- The Bank of Korea earlier raised the benchmark interest rate by 0.25 percentage point to 2.75% from 2.50%, marking its first monetary tightening move in about three years and six months.
Forecast Trend Report by Period
Citibank Korea said July 16 that it expects the Bank of Korea to raise its benchmark interest rate again at the central bank's Monetary Policy Board meeting in August.
Kim Jin-wook, Citibank Korea's chief economist, wrote in a report that the BOK would increase the benchmark rate by 0.25 percentage point at its Aug. 27 meeting if South Korea's second-quarter gross domestic product remains strong and demand-side inflation persists.
The BOK earlier raised the benchmark rate by 0.25 percentage point to 2.75% from 2.50%. The move marked the central bank's first monetary tightening in about three years and six months since January 2023. At that time, the BOK raised the benchmark rate by 0.25 percentage point to 3.50% from 3.25%.
Lee Su, Hankyung.com reporter, 2su@hankyung.com
Korea Economic Daily
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