Bank of Korea: A back-to-back hike in August, despite uncertainties?

Research evidence excerpt

Bank of Korea: A back-to-back hike in August, despite uncertainties?

Economics - Data Reactions ● Korea

16 July 2026

Table: Forward guidance from the Board (policy statement)

28 May, 2026 16 Jul, 2026

The Board will continue to conduct monetary policy in order to stabilize The Board will continue to conduct monetary policy in order to stabilize

consumer price inflation at the target level over the medium-term horizon as it consumer price inflation at the target level over the medium-term horizon as it

monitors economic growth while paying attention to financial stability. monitors economic growth while paying attention to financial stability.

While inflation is forecast to remain above the target level for a considerable While export and domestic demand are both expected to continue their robust

time, economic growth is expected to continue its solid improvement trend, improvement, supported by the spillover effects of a strong semiconductor

supported by a strong semiconductor sector, despite the impact of sector, inflation is forecast to remain above the target level for a considerable

developments in the Middle East. time, as elevated cost pressures persist for some time and as demand-

side pressure also gradually increases.

Policy statement

Regarding financial stability, it is necessary to continue to pay attention to high Regarding financial stability, it is necessary to continue to pay attention to

exchange rate volatility and to conditions regarding the housing market in elevated exchange rate volatility and acceleration in both housing prices

Seoul and its surrounding areas and household debt. increases in Seoul and its surrounding areas and in household debt growth.