South Korea: BoK seen on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggested the Bank of Korea (BoK) is expected to leave rates unchanged at its meeting later in the week.

Key Quotes

“Domestic monetary policy will remain accommodative to facilitate the economic recovery especially with COVID-19 still posing substantial risk.”

“We expect BoK to stay on hold through 2021 despite an uptick in inflation.”

“At the May meeting, the BoK is expected to raise its forecasts for both inflation and GDP growth for 2021 from 1.3% and 3.0%, respectively in February.”