Scotiabank says markets largely expect the Bank of Korea to raise rates 25 bps to 2.75% on Thursday, partly because policymakers have strongly signalled the move. Bank of Korea Governor Shin recently, while citing persistent inflationary pressure, said "it is necessary to raise the policy rate at an appropriate time." The won has depreciated about 12% versus the US dollar since mid-last year, amplifying imported- and commodity-price pass-through. Core CPI is rising and house prices continue to c

Scotiabank says markets largely expect the Bank of Korea to raise rates 25 bps to 2.75% on Thursday, partly because policymakers have strongly signalled the move. Bank of Korea Governor Shin recently, while citing persistent inflationary pressure, said "it is necessary to raise the policy rate at an appropriate time." The won has depreciated about 12% versus the US dollar since mid-last year, amplifying imported- and commodity-price pass-through. Core CPI is rising and house prices continue to climb, raising stability concerns, while exports—led by chips and broader tech—remain strong and are supporting growth. Scotiabank says the Bank of Korea will join other central banks that have recently tightened policy.