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Korea Poised to Raise Rates, Cut Growth View: Decision Guide

  • All 18 analysts expect board to hike 25 basis points to 1.75%
  • Bank of Korea says inflation to hover around 4% for some time
The Bank of Korea headquarters in Seoul.

The Bank of Korea headquarters in Seoul.

Photographer: SeongJoon Cho/Bloomberg

The Bank of Korea is set to raise interest rates Thursday even as it lowers forecast economic growth, reflecting Governor Rhee Chang-yong’s resolve to burnish his inflation-fighting credentials at his first policy meeting.

All 18 surveyed analysts see the BOK hiking its seven-day repurchase rate by a quarter percentage point to 1.75%. The central bank’s updated economic outlook is also expected to show a sharp upward revision to inflation, after it earlier said consumer prices would hold at around double the 2% target for some time.