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South Korea expected to lift base rate to 2.75% in July

DBS points to CPI inflation staying above 3% and resilient growth, while Won weakness and portfolio outflows also support tighter policy.

Reported · Written up by our desk · Central Banks

FXStreet notes that DBS economists Radhika Rao and Mo Ji expect the Bank of Korea to raise its base rate to 2.75% in July, up from 2.50%.

They cite persistent CPI inflation above 3% alongside resilient growth as key reasons for the move.

DBS also points to robust exports and investment tied to the AI boom, which they say help underpin the decision.

The economists add that Korean won weakness and portfolio outflows further strengthen the case for tighter monetary policy.

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