[MPC Watch] Experts unanimously expect BOK to raise rates; 3% forecast for year-end

All experts surveyed anticipate that the Bank of Korea (BOK) will unanimously decide to raise its benchmark interest rate at the Monetary Policy Committee (MPC) meeting scheduled for July 16. This move would mark the first rate hike under Governor Shin Hyun-song, who has advocated for such a measure since the May MPC meeting.

The current base interest rate has been held at 2.5% since July of last year. The consensus among experts is for a 0.25 percentage point increase, which would bring the rate to a new level. Projections indicate that the year-end interest rate is expected to reach 3%.

This anticipated rate hike comes amid concerns about rising consumer prices. While the specific target mentioned is 2%, the article suggests that inflationary pressures are a key factor influencing the BOK's decision. The central bank's monetary policy committee will convene to deliberate on the economic outlook and determine the appropriate course of action regarding interest rates.