South Korea: BoK expected to keep rates unchanged – UOB

In opinion of Economist at UOB Group Lee Sue Ann, the Bank of Korea (BoK) is seen keeping the policy rate unchanged at its meeting later in the month.

Key Quotes

“Given the large fiscal response, including the 4^th supplementary budget that was passed in late-September and a record budget for 2021, we maintain our expectation for the BoK to remain on hold ahead.”

“This also takes into consideration that the economy has continued to improve, the ‘effective lower bound’ for interest rate as well as concerns over the rising household debt.”