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Bank of Korea to Raise Rates 25bp in July and August, Citibank Says

2026-07-16 09:30:41

According to Citibank, South Korea's central bank is expected to raise its benchmark rate by 25 basis points in both July and August (today July 16), citing robust Q2 GDP growth and sustained demand-side inflation pressures. Citibank economist Kim Jin-wook raised the central bank's Q2 GDP forecast to 0.7% quarter-over-quarter growth and full-year forecast to 3.7%, from prior estimates of 0.3% and 3.5% respectively. The current benchmark rate of 2.75% remains below the upper end of the neutral rate range at 3.0%, according to Citibank.

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