Nomura: Maintains forecast of South Korea's central bank's 3.50% terminal interest rate, with two 25-basis-point hikes in November and February next year
2026-10-25 11:19:36
According to CoinMeta, Nomura Securities stated that the South Korean Central Bank's unanimous decision to maintain interest rates unchanged in October was in line with expectations. It is anticipated that there will be a 25-basis-point rate hike in November, followed by another 25-basis-point hike in February next year. The South Korean Central Bank has hinted at raising its economic growth and inflation forecasts, but its policy guidance is more hawkish than its economic outlook. Limited intervention measures help to explain its cautious approach. Nomura believes that there has been no widespread improvement in household income and consumption, leading to disagreements among members of the monetary policy committee regarding the sustainability of inflation and whether further policy tightening is necessary. Weak household purchasing power and a strengthening Korean won may curb inflation, and the forecasts and dot plot for November will test the market's support for higher interest rate peaks.
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Source:Jin10 Data
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