Survey: The Bank of Korea plans to keep interest rates unchanged on May 28, expecting to raise rates starting in the third quarter

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Golden Finance reports that on May 26th, a survey of economists by Reuters shows that the Bank of Korea is expected to keep its key policy rate unchanged at Thursday's rate review meeting; most economists currently expect that due to the escalation of the Iran war increasing inflationary pressures, the Bank of Korea will raise interest rates once or multiple times before the end of December.
A survey conducted by Reuters from May 19 to 25 among 32 economists shows that, except for two who predict a rate hike, all other respondents expect the Bank of Korea to keep the benchmark interest rate at 2.50% on May 28th.
Over 70% (21 out of 29 respondents) forecast at least one rate hike by the end of September, a stark contrast to last month's survey, where only three out of 30 economists expected a 0.25 percentage point increase.
This shift is due to inflation surpassing the central bank's 2.0% target, with April inflation reaching 2.6%, the highest in nearly two years, and Middle Eastern tensions also causing oil prices to stay above $100 per barrel for nearly three months.
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