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2025-12-03 13:33:06
[Nomura Securities: Bank of Korea's Easing Cycle May Have Ended, Policy Focus Shifts to Balancing Growth and Stability] 1. A recent report by Nomura Securities analyst Jeong Woo Park indicates that the Bank of Korea's monetary easing cycle may have ended, influenced by improved economic growth prospects and rising inflationary pressures. The report predicts that South Korea's economic growth rate in 2026 is expected to reach 2.3%, higher than the market consensus of 1.9%, driven by a recovery in the construction industry, continued support for consumption, and robust semiconductor exports. 2. Meanwhile, the institution forecasts South Korea's inflation rate to be 2.1% in 2026, with upward price pressures likely to become more apparent in the second half of the year. Against this backdrop, Nomura expects the Bank of Korea to maintain its current policy rate of 2.50% until the end of 2026, signifying a shift in monetary policy focus from "preventing economic slowdown" to "balancing economic growth and financial stability."
