ING economists forecast a hawkish shift from the BoK, with dot plots indicating one or two rate hikes within six months.
The Bank of Korea is expected to keep policy rates unchanged this week but adopt a more hawkish stance. Updated dot plots may show one or two rate hikes within the next six months, alongside upgraded GDP and CPI forecasts.
Economists cite strong chip production and resilient activity data as key drivers for the growth outlook. At least one board member could vote for an immediate rate hike, reflecting rising price pressures despite government measures.
The BoK’s updated projections are likely to reflect confidence in economic resilience, even as energy shocks and lower refinery output pose challenges.