The Bank of Korea is expected to raise interest rates for the first time in over three years this Thursday, according to a survey of economists. This move comes as South Korea's inflation rate hit 3.2% in June, marking the fourth consecutive month above the central bank's 2% target. Economists anticipate the benchmark rate will increase to 2.75%, with another hike likely by year-end. The decision is driven by strong economic growth, rising housing prices, and high household debt, alongside inflation pressures exacerbated by high oil prices due to Middle East conflicts. The Bank of Korea Governor Lee Chang-yong indicated that inflation is expected to remain above target for a significant period, necessitating tighter monetary policy. Most economists surveyed predict the policy rate will reach 3.00% by the end of the fourth quarter, with a potential rise to 3.25% in early 2027.