Citigroup economist Jin-Wook Kim says the Bank of Korea will raise the policy
rate from 2.50% to 2.75% at next week’s meeting and is likely to signal a
gradual hiking path. He expects the governor to indicate 25bp hikes each quarter
in H2 2026 while remaining data-dependent and offering no specific guidance for
H1 2027. Citigroup forecasts further hikes in July and October this year and in
January and April next year. Kim adds the Bank may flag upside risks to its 2026
growth forecast after an upward revision to Q1 growth and resilient Q2 activity.
