Citi Forecasts Bank of Korea Rate Hike Next Week, With Quarterly 25-Basis-Point Moves in H2 2026

Citi economists said the Bank of Korea could raise its benchmark interest rate to 2.75% from 2.50% at next week’s policy meeting and may signal a gradual pace of tightening. According to Jin10, Citi economist Jin-Wook Kim said the Bank of Korea governor may indicate 25-basis-point rate hikes each quarter in the second half of 2026, while maintaining a data-dependent stance in the first half of 2027 without providing specific guidance. Citi said it expected the Bank of Korea to raise rates in July and October this year, and again in January and April next year. Kim added that the central bank may also emphasize upside risks to its 2026 growth forecast, citing an upward revision to first-quarter growth and resilient economic activity in the second quarter.