Bank of Korea Set to Raise Rates 25 Basis Points, Starting New Tightening Cycle

2 articles · Updated · ING Think · Jul 10

A 25-basis-point Bank of Korea rate increase is expected Thursday, marking the start of a new tightening cycle in South Korea.
Firming and broadening inflation pressures are driving the move, with price growth seen on a higher path rather than a temporary spike.
Growth holding up has given policymakers room to tighten, reducing pressure to prioritize economic support over inflation control.
The expected hike comes as regional central banks also weigh persistent price risks, even with lower oil prices offering some relief across Asia.

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