Citi: Bank of Korea May Drop Rate Cut Option as Early as April

Deep News
01/07

Citigroup economist Jin-Wook Kim wrote in a report that the Bank of Korea may abandon the potential interest rate cut option as early as April. Kim anticipates that the central bank will maintain its benchmark interest rate at 2.50% during the policy meeting on January 15, as its monetary policy is shifting towards a long-term stance of keeping rates steady, although officials still retain the option to cut rates. He stated that Bank of Korea Governor Rhee is likely to express concerns about financial instability at the upcoming meeting, particularly regarding the weakness of the Korean won against the U.S. dollar, while simultaneously ruling out the possibility of an interest rate hike in the first half of the year. He added that an interest rate hike by the Bank of Korea in 2026 is highly unlikely.

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