Nomura said that the Bank of Korea has ended the interest rate cut cycle and may keep interest rates unchanged in 2026, and as the economic growth momentum increases, the risk of the next policy trend has turned to interest rate hikes. Nomura economist Jeong Woo Park said that this shift reflects market expectations that the Korean economy will expand at a higher than potential growth rate next year, thanks to stronger domestic consumption, recovery in the construction industry, and the upward cycle of the global semiconductor industry. He added that the South Korean economy is expected to close the gap with potential output around the second quarter of next year. This is earlier than the Bank of Korea's forecast, thus reducing the need for further policy relaxation.

Nomura said that the Bank of Korea has ended the interest rate cut cycle and may keep interest rates unchanged in 2026, and as the economic growth momentum increases, the risk of the next policy trend has turned to interest rate hikes. Nomura economist Jeong Woo Park said that this shift reflects market expectations that the Korean economy will expand at a higher than potential growth rate next year, thanks to stronger domestic consumption, recovery in the construction industry, and the upward cycle of the global semiconductor industry. He added that the South Korean economy is expected to close the gap with potential output around the second quarter of next year. This is earlier than the Bank of Korea's forecast, thus reducing the need for further policy relaxation.