Most analysts expect South Korea's central bank to raise rates to 3.5 percent in 2023 and then have a chance to halt the cycle of rate hikes.

(Midland file photo)

[Financial Channel/Comprehensive Report] The survey predicts that South Korea’s December inflation is expected to hit a seven-month low, highlighting that the market believes that the South Korean central bank, which has been raising interest rates, should soon end this cycle of interest rate hikes.

Reuters reported that a survey by South Korea's central bank showed consumers' consensus forecast for inflation in the next 12 months was 3.8 percent, down from 4.2 percent in November but up from 3.3 percent in May.

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In the survey, the Consumer Confidence Index (CSI) edged up to 89.9 in December from 91.4 in September, 88.8 in October and 86.5 in November, after falling for two straight months.

South Korea's central bank is one of the first central banks of major economies to start raising interest rates. From August 2021 to November 2022, South Korea has raised the local policy interest rate by 275 basis points to the current 3.25% in nine times.

In the latest poll, most analysts expect the Bank of Korea to raise interest rates to 3.5 percent in 2023 before having a chance to halt the cycle of rate hikes.

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