Farmon Credit: The Central Bank of Korea is more likely to raise it again in October after the July hike

On 15 July, the Bank indicated that the market generally expected the Central Bank of Korea to increase policy interest rates by 25 basis points to 2.75 per cent on 16 July. The central bank has repeatedly reiterated the need for interest rate hikes, so market participants will pay close attention to their hints about the next hour of the hike and the interest rate at the end of the current cycle. Given that the Central Bank of Korea will only update its macroeconomic forecasts and six-month vision guidelines in August, and that international crude oil prices have fallen since the last meeting, it is expected that the Central Bank will not imply a successive increase in interest rates in August, but will be more likely to act in October. At the July meeting, the Central Bank of Korea may send a signal of further interest rate hikes, but no specific timetable will be given to observe more data. Kim Xian