Moody's Analytics Expects Bank of Korea to Raise Base Rate 25 bps to 2.75% This Week

Moody's Analytics said in a report that it expects the Bank of Korea to raise its benchmark interest rate by 25 basis points this week to 2.75%, according to 36Kr. The firm said a July hike would mark the start of a gradual tightening cycle, citing inflation well above target and likely to ease only if energy prices retreat. It also pointed to a weaker won, a renewed surge in household debt, and rising home prices in Seoul as factors strengthening the case for a rate increase. The Bank of Korea's rate-setting meeting is scheduled for Thursday.