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2026-07-16 10:28:13
[The Bank of Korea Confirms Maintaining Interest Rate Hike Stance, Supported by Strong Economy and Financial Risks] (1) The Monetary Policy Committee of the Bank of Korea stated that it will continue to maintain its interest rate hike stance in the future, taking into account inflation and financial stability factors. It had just announced its first interest rate hike in three and a half years, against the backdrop of strong economic growth driven by exports and investment. It expects inflation to continue to be higher than the target, and financial stability risks remain. (2) The Committee expects that, supported by a strong semiconductor boom cycle, exports and investment will maintain high growth, consumption will expand as income improves, and the economy will grow steadily, with this year's growth rate significantly higher than the 2.6% forecast in May. In terms of prices, inflation will remain high for a considerable period of time. (3) At the same time, the Korean won has become more volatile against the US dollar, housing-related loans and household loans have increased significantly, and the upward trend in housing prices in the Seoul metropolitan area has intensified. Considering the above factors, the Committee judged that it is necessary to continue to maintain its interest rate hike stance.
