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Bond Market Experts Predict Bank of Korea to Hold Rates Steady in August
Finance · Investment Banks/Brokers · yonhap_finance · 2026-08-25
A survey by the Korea Financial Investment Association shows 79% of bond market participants expect the BOK to keep interest rates unchanged this month.
What Happened
Rate Freeze Expectations: According to a survey conducted by the Korea Financial Investment Association, 79% of bond market professionals anticipate that the Bank of Korea will maintain the current base interest rate at the upcoming monetary policy meeting. This marks a significant increase in the proportion of respondents favoring a hold compared to the previous month.
Improved Market Sentiment: The Bond Market Survey Index (BMSI) for September rose compared to the previous month, indicating a slight recovery in market sentiment. Despite ongoing domestic and international uncertainties, the consensus leans toward stability rather than further rate hikes.
Global Policy Watch: Investors are adopting a wait-and-see approach ahead of the Jackson Hole Symposium and the September FOMC meeting. Consequently, the number of respondents expecting interest rates to remain flat has increased, reflecting a cautious stance on global monetary policy trends.
Inflation and Currency Factors: While uncertainty regarding inflation persists, geopolitical tensions in the Middle East and concerns over trade negotiations are influencing the market. Most participants currently expect the exchange rate to remain stable, reflecting these complex external variables.