Morgan Stanley economist Kathleen Oh says the Bank of Korea is likely to hold rates at its October meeting to assess the impact of prior hikes, though two board members may vote to tighten further amid still-elevated core inflation and market concern that price pressures could become entrenched. Oh warns higher rates would further pressure low-income households, wage earners and small, labor-intensive firms, but Korea’s recovery—led by services and construction—means the economy can likely absor

Morgan Stanley economist Kathleen Oh says the Bank of Korea is likely to hold rates at its October meeting to assess the impact of prior hikes, though two board members may vote to tighten further amid still-elevated core inflation and market concern that price pressures could become entrenched. Oh warns higher rates would further pressure low-income households, wage earners and small, labor-intensive firms, but Korea’s recovery—led by services and construction—means the economy can likely absorb additional tightening. Morgan Stanley expects one rate rise in November and another in Q1 2027.