HSBC: AI's Direct Inflationary Impact More Likely to Be Seen in South Korea

Odaily Planet Daily News HSBC economists said in a research report that AI may have a more direct inflationary impact on South Korea, which serves as an upstream hardware supplier. They stated that bottlenecks in high-tech components and logistics are driving up producer prices in these key upstream markets. They added that the Bank of Korea may have to tighten monetary policy to address inflation. HSBC expects the Bank of Korea to raise interest rates once more by the end of this year. They added that at the same time, there may be upside risks for further tightening in 2027, depending on the extent to which the surge in AI exports is transmitted to local economic activities. (Jin Shi)