Bank of Korea Expected to Postpone Next Rate Cut Until October

According to ChainCatcher, Min Joo Kang, Senior Economist at ING, stated that the Bank of Korea is expected to postpone its next interest rate cut until October in response to the recent rise in domestic housing prices and household debt.

Kang pointed out that the Bank of Korea can act cautiously and focus more on financial stability, as inflation is expected to remain near the central bank’s 2% target for the foreseeable future. In June, the country’s overall consumer inflation rose 2.2% year-on-year, slightly above the market consensus of 2.1%. Core inflation, which excludes volatile food and energy prices, remained steady at 2.0% for the second consecutive month.