Institution: Bank of Korea Highly Likely to Raise Rates This Week, Potentially Marking Start of Tightening Cycle

Odaily reported that according to BigGo Finance, sources from the financial community have revealed that the market generally expects the Bank of Korea to raise interest rates by 25 basis points at its meeting this Thursday, lifting the benchmark rate from 2.50% to 2.75%. This would be the first rate hike since January 2023, after a gap of approximately three and a half years, and could mark the beginning of a tightening cycle. Bond market experts predict further rate increases within this year, with the benchmark rate expected to reach 3.00% by year-end and rise to 3.25% in the first half of next year. This means borrowers need to prepare for at least a year of rising interest rates. (Jin Shi)