Barclays: The Bank of Korea may start tightening monetary policy in August

Golden Ten Data reported on May 14 that Barclays analyst Bum Ki Son stated that the Bank of Korea may begin tightening monetary policy in August. The economist expects the Bank of Korea to take "preventive" interest rate hikes—one increase each in the third and fourth quarters of this year, and another in the second quarter of next year—raising rates from the current 2.50% to 3.25%. In a research report, he wrote that after stronger-than-expected GDP growth in the first quarter, the Bank of Korea may be more optimistic about the economic outlook. He also pointed out that heightened concerns over overall consumer price increases, driven by shocks to Middle Eastern oil prices, may prompt the Bank of Korea to adopt preventive rate hikes.