Central bank rate rise more likely at next meeting: Kofia survey

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Central bank rate rise more likely at next meeting: Kofia survey

Published: 23 Dec. 2022, 11:17 Updated: 23 Dec. 2022, 14:21

An increasing number of bond experts in Korea forecast that the country's central bank will raise its key interest rates next month amid aggressive monetary tightening in the United States, a poll showed Friday.

According to the survey of 100 bond experts by the Korea Financial Investment Association (Kofia), 38 percent of the respondents predicted the Bank of Korea would increase its policy interest rate in January, up from a 25-percent response from a month ago.

The survey showed 28 percent of the respondents expect a cut in the policy interest rate, down from 41 percent over the cited period.

The bank is slated to hold next rate-setting meeting on Jan. 13.

The central bank has increased its benchmark interest rate by a combined 2.75 percentage points since August last year to tame inflation, which has risen at the fastest pace in more than two decades. The current rate stands at 3.25 percent.

The Kofia said more financial experts are expecting that the U.S. Federal reserve's adherence to its hawkish stance will continue to stoke the global rate hike moves.

Yonhap