South Korea BOK Policy Update

The Bank of Korea kept rates at 2.5% but signaled a hawkish turn with two dissenting votes for a hike and upwardly revised 2026 growth and inflation forecasts. Goldman Sachs expects two 25bp rate hikes in the second half of 2026.

Key Takeaways

• 1.The Bank of Korea maintained its policy rate at 2.5%, but the decision included two dissenting votes favoring a hike.
• 2.BOK significantly raised 2026 growth and inflation forecasts, signaling a hawkish shift in policy direction.
• 3.The Governor indicated an 'exceptionally clear' path for rate hikes, with the median dot plot now projecting two hikes within six months.

Table of Contents

• Bottom line
• Main points
• Disclosure Appendix
• Global product; distributing entities
• General disclosures

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