The Bank of Korea is widely expected to raise its growth forecast at its policy meeting Thursday, as analysts remain divided over whether the central bank will raise rates again following its first hike in three years in July.
"We believe the monetary policy board is split between a hold and a pre-emptive hike," Barclays economist Bum Ki Son said.
Some analysts expect the BOK to deliver a back-to-back rate hike in August, citing stronger-than-expected economic growth driven by robust semiconductor exports and above-target inflation.
Others, however, expect the BOK to pause as it assesses the impact of the July hike and the weak recovery in consumer spending, before tightening again in October or November to curb price growth.
Most analysts expect the BOK to lift its 2026 GDP growth forecast for South Korea to 3% or higher from 2.6%.
