HSBC: It is unlikely that the Bank of Korea will raise interest rates in the near future.

HSBC economist Jin Choi's research report states that the Bank of Korea is unlikely to raise interest rates in the near future, even though the central bank has signaled the end of loose monetary policy. Choi said that due to the inflation rate possibly not reaching the Bank of Korea's 2% target until 2026-2027, and the country's economic performance still being weak, any market pricing regarding a rate hike in South Korea would be "too aggressive." He stated that concerns about financial stability could postpone a possible rate cut, but would not prompt the Bank of Korea to raise rates in the coming quarters. The Bank of Korea maintained its benchmark interest rate unchanged for the fifth consecutive meeting on Thursday and removed the mention of a possible rate cut from its policy statement.