JPMorgan Sees Upside in 3.75% South Korea Rate Forecast
JPMorgan Chase & Co. has upgraded its interest rate forecast for South Korea, citing potential upside to its already hawkish call of a 3.75% benchmark rate by next year.
The Wall Street lender expects the Bank of Korea (BOK) to raise rates in November and again in February and May next year, taking the benchmark rate to 3.75%. This is above the median forecast of 3.5% seen by economists surveyed by Bloomberg, which predicts the rate will remain at that level through the second quarter of 2028.
The upgrade comes due to the potential impact of semiconductor-driven growth on inflation, as long as credit and financial markets remain stable. JPMorgan's forecast is more aggressive than many others, but it remains cautious about the broader economic outlook.