HSBC: AI Inflation Pressure More Direct for Korea, Central Bank to Hike Rates by Year-End

HSBC-1.57%
According to HSBC economists, artificial intelligence is likely to have more direct inflation effects on South Korea as an upstream hardware supplier. High-tech component and logistics bottlenecks are pushing up producer prices in these key upstream markets. The bank expects South Korea's central bank will raise rates one more time by year-end, with further policy tightening possible in 2027 depending on how AI export gains transmit to the local economy.
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