{"id":78769,"date":"2026-05-08T09:07:21","date_gmt":"2026-05-08T02:07:21","guid":{"rendered":"https:\/\/hbbgroup.net\/south-korea-modest-tightening-prospects-dbs\/"},"modified":"2026-05-08T09:07:21","modified_gmt":"2026-05-08T02:07:21","slug":"south-korea-modest-tightening-prospects-dbs","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/south-korea-modest-tightening-prospects-dbs\/","title":{"rendered":"South Korea: Modest tightening prospects \u2013 DBS"},"content":{"rendered":"<div id=\"post-content-section\">\n<p>DBS Group Research economist Ma Tieying expects the Bank of Korea (BoK) to keep its base rate at 2.50% at the May 28 meeting, but now projects a single 25 bps hike in 3Q 2026 to 2.75%. The report cites firmer inflation, rising PPI and inflation expectations, but also K\u2011shaped growth and sectoral weakness as constraints on aggressive tightening.<\/p>\n<h2>DBS flags one 3Q rate hike<\/h2>\n<p>&#8220;Following our earlier upgrade to 2026 <a href=\"https:\/\/www.fxstreet.com\/economic-calendar\" data-fxs-autoanchor>GDP<\/a> and inflation forecasts, we now also revise our interest rate <a href=\"https:\/\/www.fxstreet.com\/rates-charts\/forecast\" data-fxs-autoanchor>outlook<\/a>, calling for one 25bps hike in 3Q.&#8221;<\/p>\n<p>&#8220;Recent data support the case for the Bank of Korea to keep the base rate unchanged at 2.50% at the May 28 meeting.&#8221;<\/p>\n<p>&#8220;Looking ahead, we see a rising likelihood of a 25bps rate hike in 3Q, which would bring the base rate to 2.75%.&#8221;<\/p>\n<p>&#8220;Inflation is expected to pick up more noticeably in May, with headline CPI potentially reaching 3% and core CPI beginning to reflect some pass-through.&#8221;<\/p>\n<p>&#8220;As second-round inflation pressures start to build, the BOK is likely to adopt a more vigilant stance in the coming months.&#8221;<\/p>\n<p><em>(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)<\/em><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>DBS Group Research economist Ma Tieying expects the Bank of Korea (BoK) to keep its base rate at 2.50% at [&hellip;]<\/p>","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-78769","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/78769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/comments?post=78769"}],"version-history":[{"count":0,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/78769\/revisions"}],"wp:attachment":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/media?parent=78769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/categories?post=78769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/tags?post=78769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}