Bank of Korea Likely to Hold Rates Steady This Week

According to a report by Jinse Finance, the Bank of Korea is likely to keep interest rates unchanged for the second consecutive time at its policy meeting on Thursday. A survey by The Wall Street Journal of 27 economists showed that 20 expect no change in rates, while the remaining 7 anticipate a rate cut. In a report led by Goohoon Kwon, Goldman Sachs economists stated that maintaining a dovish stance would give the Bank of Korea room to monitor household debt trends, assess the impact of ongoing fiscal stimulus, and track the Federal Reserve’s policy direction. Goldman Sachs predicts that the Bank of Korea will cut rates in October. Most economists expect the central bank to slightly raise its 2025 GDP and inflation forecasts, citing stronger-than-expected economic growth data in the second quarter.