JP Morgan: "Han Eun, Base Interest Rate to Reach 1.75% by Year-End... Additional Hikes Expected in April-May"

[Asia Economy Sejong=Reporter Dongwoo Lee] Global investment bank (IB) JP Morgan maintained its forecast on the 24th that the Bank of Korea's Monetary Policy Committee (MPC) will raise the interest rate by 25bp (1bp=0.01%) each in the 2nd and 3rd quarters, bringing the year-end base rate to 1.75%.

It also predicted an additional base rate hike in April to May.

Park Seok-gil, Head of JP Morgan's Financial Market Operations Department, stated in a report published that day, "We expect the next rate hike by the Bank of Korea's MPC to be in April, but the timing could be postponed to May."

He added, "The unanimous decision to hold rates steady and the tone of the press conference were not very hawkish, which contrasts with the January MPC minutes that emphasized preemptive measures to curb inflation. The pace of rate hikes, which had been consecutive from November last year to January this year, may be somewhat adjusted."

The MPC unanimously decided to keep the base rate at 1.25% per annum that day. The consumer price inflation forecast for this year was revised upward from the previous 2.0% to 3.1%.

This content was produced with the assistance of AI translation services.