Bank of Korea Raises Benchmark Rate for First Time in 3.5 Years; Next Hike Timing Key Focus

The Bank of Korea raised its benchmark interest rate in July, entering an active tightening cycle for the first time in 3.5 years. Market focus has shifted from whether to pursue additional hikes to when they will occur. Fourteen major institutions support continued tightening, with domestic securities firms forecasting a final rate of 3.25% and overseas investment banks targeting 3.75%.
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