Bank of Korea Raises Base Rate to 2.75%, DBS Projects Further Hikes by 2026

The Bank of Korea has increased its base interest rate to 2.75%, according to FX Street. This move reflects ongoing efforts to manage inflation and stabilize the economy amid global uncertainties.

DBS Group Research economist Ma Tieying anticipates that the policy rate will continue rising, reaching 3.25% by the end of 2026. This forecast suggests a gradual tightening of monetary policy in the coming years.

For Japanese investors, these developments in South Korea’s monetary policy could influence regional capital flows and currency dynamics, especially in FX and equity markets closely linked to Korea’s economic outlook.