Bank of Korea to raise rates again on May 26, to hit 2.25% by year end

South Korea’s central bank is likely to hike its benchmark rate at a second consecutive meeting on Thursday to combat inflation running at more than double its target, taking rates higher by year end than previously thought, a Reuters poll showed.

Inflation in Asia’s fourth-largest economy rose to more than a 13-year high of 4.8% in April, as repercussions from the Russia-Ukraine war and a weakening won , down 7% this year, ramped up prices. Inflation has stayed above the central bank’s target of 2.0% for more than a year.

All but one of the 28 economists polled May 17-23 forecast the Bank of Korea (BoK) will raise its policy rate (KROCRT=ECI) by 25 basis points to 1.75% at its May 26 meeting

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