South Korea: BoK seen on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank of Korea could keep the policy rate unchanged at 3.50% at this week’s event (February 23).

Key Quotes

“Views are now mixed whether the BOK would carry on tightening its monetary policy after a cumulative 300bps rate hike since Aug 2021. The BOK was also clear in its messaging that the room for further monetary tightening remains.”

“However, barring a change to global inflation trajectory where price gains are expected to slow this year, we maintain our view that the BOK is done with its rate hikes and would stay on hold at 3.50% through 2023.”