Bank of Korea Expected to Raise Rates 25bp in July as Inflation Pressure Eases

According to KB Securities analyst on July 10, South Korea's central bank is expected to unanimously raise the benchmark rate by 25 basis points at its July monetary policy committee meeting. June consumer inflation rose 3.16% year-over-year, but month-over-month gains slowed to 0.06% due to declining travel-related goods prices and reduced fuel surcharges. Concerns over price pressures and currency volatility have eased, with the dollar-won exchange rate retreating to the 1,500 won level and Brent crude remaining below $80 per barrel. The analyst notes that July inflation is likely to remain modest, with prices expected to slow further after August's peak due to base effects.
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