- BoK hikes rates by 25 bps to 3.50%, as widely expected
Market news
BoK hikes rates by 25 bps to 3.50%, as widely expected
The Bank of Korea (BoK), the South Korean central bank, raised the benchmark interest rate by 25 basis points (bps) from 3.0% to 3.50% at its January monetary policy meeting, as widely expected.
Summary of the statement
Economic growth to slow.
Gdp growth to be slower than expected.
Inflation to slow gradually.
Housing price decline accelerated.
Has no reference to need for more rate hikes.
Assessment of recent rate hikes to factors to be considered going forward.
Polcy focus will remain on containing inflation.
Extends existing measures to support short-term money markets by three months.
Market reaction
USD/KRW dropped to fresh nine-month lows of 1,234.31 in an initial reaction to the BoK announcement before recovering some ground to trade at 1,239, where it now wavers. The pair is trading modestly flat on the day.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer