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2026-07-16 09:58:13
[Capital Economics: Bank of Korea May Continue to Tighten Rates After Rate Hike, Supported by Three Factors] (1) Economist Gareth Leather predicts that the Bank of Korea may raise interest rates further after Thursday's rate hike. (2) In addition to the recent sharp rise in overall inflation, core inflation has risen from 2.0% at the beginning of 2026 to 2.5%, which is causing the central bank greater concern; at the same time, the financial stability risks brought about by rising housing prices are another reason for maintaining higher interest rates. (3) However, South Korea's export performance is strong, and the economy has the ability to withstand higher interest rates, providing room for the central bank to continue tightening.
