Economists at Goldman Sachs offered their afterthoughts on the Bank of Korea’s (BOK) 25 bps rate hike decision, citing that the South Korean central bank will hike the rates by another 25 bps in October.

Also read: Bank of Korea raises key interest rate to 2.50% from 2.25% as expected

Key quotes

"The BoK Governor reiterated previous guidance that the MPC will focus more on inflation risks for the time being and hike the policy in 25bp increments to around 2.75-3.00% by year-end.”

“Beyond the near term, the MPC will keep a data-dependent approach. We continue to expect one more 25bp policy rate hike in October but a pause in November on a sharp slowdown in growth and further progress in disinflation.”

“That said, it would be important to monitor growth momentum closely given that the BoK might choose to raise the policy rate in November, should activity remain as resilient as in BoK's revised forecasts."