Bank of Korea Widely Expected to Raise Rates to 2.75%

The Bank of Korea is projected to raise its benchmark interest rate by 25 basis points to 2.75% at its upcoming monetary policy meeting on Thursday, according to a Reuters poll of economists published on Tuesday. The move would mark the central bank's first interest rate hike in more than three years. Out of 37 economists surveyed between July 7 and July 13, 36 forecast a rate increase this week. Driven by persistent inflation pressures that remain well above the central bank's 2% target, the majority of economists also expect policymakers to implement an additional rate hike before the end of 2026, the report said.