Bank of Korea Faces Risk of Consecutive Rate Hikes in August if Economic Data Surprises, Barclays Says

According to Barclays economist Son Beom-gi on July 16, the Bank of Korea may execute consecutive rate hikes in August if upcoming economic indicators exceed expectations, following the central bank's July rate increase. The economist identified upside risks to the baseline forecast, which assumes a 25 basis point hike in October and a final increase in April 2027.

BOK Governor Shin Hyun-sung has signaled close monitoring of Q2 GDP growth, GDI, July CPI, the Korean won, import prices, and real estate prices. Barclays noted the governor's position that stock market volatility poses minimal real economic impact, countering broader financial stability concerns.