HSBC: The direct inflationary impact of AI is more likely to be seen in South Korea
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Author:小编   

HSBC economists noted in a research report that AI may have a more direct inflationary impact on South Korea, an upstream hardware supplier. Currently, high-tech components and logistics bottlenecks are driving up producer prices in key upstream markets. As a result, the Bank of Korea may need to tighten monetary policy to combat inflation. HSBC forecasts that the Bank of Korea may raise interest rates once more by the end of this year. Meanwhile, there could be upside risks of further policy tightening in 2027, depending on the extent to which a surge in AI exports is transmitted to local economic activity.