SEOUL– A majority of bond experts in South Korea expect the country’s central bank to raise its policy interest rates next month along with the U.S. Federal Reserve’s hawkish signal, a poll showed Tuesday.

According to the survey of bond experts by the Korea Financial Investment Association (KOFIA), 61 percent of the respondents expected the Bank of Korea (BOK) would increase its key rates in October.

The October forecast for rate hikes increased by 28 percentage points from a month earlier, KOFIA’s data showed.

The survey results showed the BOK’s decision is likely to be in line with the Fed’s upcoming rate decision, to be announced Wednesday (U.S. time).

The BOK’s next policy meeting is slated for Oct. 14. In August, the BOK made its seventh rate hike move since August last year to tame the high-flying inflation rates.

“More experts are betting for (additional) rate hikes in October, with continued outlook for global inflation and the U.S. Fed’s policy tightening,” the KOFIA stated.

The KOFIA said its bond market survey index (BMSI) stood at 54, down from 93 for October. A BMSI reading below 100 means more experts expect bond market conditions to worsen.

Source: Yonhap News Agency