Bank of Korea Holds Rate, Signals Multi‑Hike Cycle

BOK kept benchmark rate at 2.5% for eighth straight meeting, with two board members urging a 25‑bp hike.
ING notes higher probability of two rate hikes in H2 2026, projecting 75 bps tightening by July, October and early 2027.
Revised BOK forecasts raise 2026 GDP to 2.6% and inflation to 2.7%, suggesting growth above potential and positive output gap.
Governor Shin warned of inflation pressures, exchange‑rate volatility and housing‑price instability, and said the bank will act on one‑sided FX moves.