South Korea's Central Bank Governor Leaves Door Open for August Rate Hike Amid Softening Inflation

According to Meritz Securities on July 20, Bank of Korea Governor Shin Hyun-song did not rule out an August rate increase, though a second consecutive hike appears unlikely if July inflation slows as expected. The analyst noted that July consumer prices are projected to decline month-over-month due to falling oil prices, while core inflation risks remain contained. Meritz forecasts the central bank will raise rates in July and October this year, reaching 3.25% by the first quarter of 2027, contingent on semiconductor sector performance and domestic demand trends.
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