Survey: The Bank of Korea is expected to keep interest rates unchanged on May 28 and is predicted to raise them starting in the third quarter.

A survey by Reuters of economists showed that the Bank of Korea is expected to keep its key policy rate unchanged at Thursday's rate assessment meeting; most economists currently expect the Bank of Korea to raise interest rates once or multiple times before the end of December due to escalating inflation pressure from the Iran war. A survey of 32 economists conducted by Reuters from May 19 to 25 showed that, except for two who predicted an increase, all other respondents predicted that the Bank of Korea will keep the benchmark interest rate at 2.50% on May 28. Over 70% predicted that there will be at least one rate hike by the end of September, which is a stark difference from last month's survey results, when only three out of 30 economists predicted a 0.25 percentage point rate hike. This shift is due to the inflation rate surpassing the central bank's 2.0% target, with April inflation reaching 2.6%, the highest in nearly two years, and the tension in the Middle East keeping oil prices above $100 per barrel for almost three months.