- Analytics
- News and Tools
- Market News
- South Korea: BoK kept the policy rate unchanged in February – UOB
South Korea: BoK kept the policy rate unchanged in February – UOB
Economist at UOB Group Ho Woei Chen, CFA, reviews the latest interest rate decision by the BoK.
Key Takeaways
“In line with market consensus, the Bank of Korea (BOK) kept its benchmark base rate unchanged at 1.25% at its Feb meeting.”
“The BOK officially raised its 2022 inflation forecast to 3.1% from 2.0% after warning in Jan that inflation could exceed the path projected in Nov 2021. The sharply higher inflation outlook underpins expectation that the BOK will resume its rate normalisation in Apr/May.”
“After three rate hikes, we think the BOK can afford to wait and see how other global central banks respond to the Russia-Ukraine crisis and the impact on already high energy prices while also assessing the risks from record high COVID-19 infections at home. Nevertheless, based on expectation of a higher inflation trajectory this year, we maintain our forecast for another 50 bps interest rate hike, likely with 25 bps each in 2Q and 3Q to bring the base rate to 1.75% by end-2022.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
