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fxJul 10, 2026, 8:07 PM

DBS Expects Bank of Korea to Raise Rate to 2.75% in July

DBS economists predict the Bank of Korea will raise its base rate to 2.75% from 2.50% in July, citing persistent CPI inflation above 3% and resilient exports.

USDKRW

DBS economists Radhika Rao and Mo Ji expect the Bank of Korea (BoK) to deliver a 25-basis-point rate hike in July, lifting the base rate to 2.75% from 2.50%.

The forecast is underpinned by consumer price inflation that remains stubbornly above the 3% threshold, alongside strong export performance that provides the central bank with room to tighten policy further.

If realised, the move would reinforce the BoK's commitment to curbing inflation and could provide additional support for the South Korean won.

Source: FXStreet Forex News