Live Updates > Live Update Details
2026-05-28 09:13:29
[The Bank of Korea keeps interest rates unchanged, raises growth and inflation forecasts, and opens the door to policy tightening] (1) The Bank of Korea kept its benchmark seven-day repo rate unchanged at 2.50% at its first meeting chaired by Governor Shin Hyun-song, marking the eighth consecutive meeting without adjustment; 24 out of 25 economists surveyed by the media had previously made the correct prediction. (2) Most economists expect the Bank of Korea to take a tighter stance in the coming months, given the upside risks to economic growth and inflation (strong chip exports drove strong economic growth in the first quarter, and rising oil prices due to tensions in the Middle East pushed up inflation), with many expecting a rate hike in the third quarter, possibly as early as July. (3) The bank raised its economic forecasts: GDP growth forecast for 2026 was revised upward from 2.0% to 2.6%, and for 2027 from 1.8% to 2.1%; the average inflation rate forecast for 2026 was revised upward from 2.2% to 2.7%, and for 2027 from 2.0% to 2.3%.
