Jin Wook Kim: The Bank of Korea is expected to raise interest rates to 2.75% next week, with gradual rate hikes to follow

Citigroup economist Jin Wook Kim stated that the Bank of Korea will raise its benchmark interest rate from 2.50% to 2.75% at next week's policy meeting and hinted at a gradual pace of rate hikes. He expects the Governor of the Bank of Korea to imply a quarterly interest rate hike of 25 basis points in the second half of 2026, maintaining a data dependent stance for the first half of 2027. Citigroup expects the Bank of Korea to raise interest rates in July and October this year, as well as in January and April next year. Kim stated that the Bank of Korea will emphasize the upward risk in its 2026 growth forecast, citing a revision in first quarter growth and the resilience of economic activity in the second quarter.