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

Odaily Planet Daily News According to BigGo Finance, sources from the financial sector revealed that the market widely expects the Bank of Korea to raise interest rates by 25 basis points at its meeting this Thursday, raising the benchmark rate from 2.50% to 2.75%. This would be the first rate hike since January 2023, after a hiatus of about three and a half years, and is likely to mark the beginning of a tightening cycle. Bond market experts predict further rate hikes 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, meaning borrowers need to prepare for a rate increase lasting at least one year. (Jin Shi)