Deutsche Bank: Bank of Korea may raise interest rates by another 25 basis points three times

Juliana Lee of Deutsche Bank stated that after raising interest rates to 2.75% on Thursday, the Bank of Korea may increase rates by another three 25 basis points by the end of the second quarter of 2027. The economist expects the Bank of Korea to raise its policy rate to 3.50%, citing the July statement which clearly mentioned maintaining a policy stance "consistent with further rate hikes" in the event of stronger-than-expected economic growth and persistently high inflation. Lee added that increased foreign exchange volatility, faster growth in household debt, and new housing price pressures also support Deutsche Bank's prediction that the Bank of Korea will further increase its policy rate.