Woofun AI reports that HSBC economist Jin Choi anticipates the Bank of Korea will execute a preventive 25-basis-point rate increase this week. Despite easing Middle East tensions and stable oil prices, the South Korean won faces depreciation pressure while core inflation remains elevated. Choi argues these conditions justify preemptive action rather than waiting for oil price declines. He highlights that AI-driven export booms may transmit earnings to domestic demand via wages and capital expenditure, potentially fueling demand-pull inflation. HSBC projects an additional 25bps hike in the fourth quarter, with upside risks for further increases in 2027.