South Korea: BoK expected to keep rates on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank of Korea (BoK) would keep the policy rate intact at its meeting later this week.

Key Quotes

“Although concerns over financial imbalances have slightly abated, the higher commodity and food prices which may be further exacerbated by supply disruption has underpinned expectations that the BoK will resume its rate normalisation in Apr/May.”

“Our base case remains for 25 bps hike each in 2Q and 3Q but the higher inflation risk may warrant a further 25 bps increase in 4Q, though this is not in our base case yet.”