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South Korea's Central Bank Expected to Raise Rates in October; August Rate Hike Gaining Support

2026-07-21 21:13:28

According to Bloomberg, South Korea's central bank is expected to raise its policy rate again in October, with about one-quarter of surveyed economists predicting a move as early as August. Central bank governor Lee Ju-yeol indicated that maintaining a tightening stance is necessary due to persistent inflation above target levels, improved economic growth, and lingering financial stability risks. Some economists forecast the current tightening cycle will end at 3.25%, while others expect rates to reach 3.5% as the central bank accelerates its pace.

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