Citi: The Bank of Korea may raise interest rates faster than expected

Jinse Finance reported that on May 13, Jin-Wook Kim from Citigroup stated that the Bank of Korea’s rate hike pace may be faster than expected, possibly starting from July. The economist noted that with corporate tax support from semiconductor companies, fiscal spending is expected to increase. In this context, the Bank of Korea could enter a longer-than-expected tightening cycle. Considering the upside risks to economic growth and inflation, Kim now expects the Bank of Korea to raise rates by 25 basis points four times by the end of April 2027, compared to the previous forecast of two hikes by the end of October 2026. Citigroup has revised up its economic growth forecasts for the country in 2026 and 2027 to 3.0% and 2.8% respectively, higher than the previous forecasts of 2.9% and 2.4%. (Dong Shin News Agency)