South Korea's Central Bank Projected to Resume Interest Rate Hikes in 2027

Deep News
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According to a report by Min Joo Kang, Senior Economist at ING, the Bank of Korea is expected to restart raising interest rates in 2027. Kang noted, however, that if economic growth and inflation in South Korea accelerate more rapidly than anticipated, monetary tightening could begin earlier—potentially in the fourth quarter of 2026. ING forecasts the country's gross domestic product (GDP) to grow by 2.2% in 2026, surpassing the central bank's latest projection of a 2.0% increase. She added that the risk of an earlier-than-expected rate hike could be limited by a K-shaped recovery, where the information technology sector performs strongly while non-IT industries lag behind.

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