South Korea's Central Bank Expected to Raise Rate to 2.75% in First Hike Since 2023

Market participants widely expect the Bank of Korea to raise its benchmark interest rate by 25 basis points to 2.75% at a meeting this Thursday, according to financial sources cited by BigGo Finance. According to Odaily, this would mark the first rate hike since January 2023, after a gap of about three and a half years, and is likely to signal the start of a tightening cycle. Bond market experts predict further rate increases this year, with the benchmark rate expected to reach 3.00% by the end of the year and rise to 3.25% in the first half of next year, indicating that borrowers should prepare for higher rates lasting at least one year.