Citi: Bank of Korea may raise its 2026 GDP growth forecast

Glonghui, May 19th｜Citibank analyst Jin-Wook Kim stated that, due to strong South Korean Q1 GDP data and ongoing fiscal stimulus measures, the Bank of Korea is expected to raise its 2026 GDP growth forecast from the previous 2.0% to 2.5%-2.7% at its policy meeting on May 28. Kim also pointed out that, considering the impact of rising oil prices, the Bank of Korea is expected to raise its 2026 consumer inflation forecast from the previous 2.2% to 2.6%-2.8%. Citibank maintains its view, expecting the Bank of Korea to implement four rate hikes—scheduled for July and October 2026, and January and April 2027.