Unanimous forecasts point to Bank of Korea rate hike today as won weakness bites
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Unanimity across forecasters suggests the hike itself is fully priced, meaning the real market focus will be on the tone of the governor's guidance, particularly any signal on the pace and timing of further tightening. With the won under depreciation pressure and inflation above
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Asia week ahead: Korea rate call, data from China and India
The desk anticipates a 25 basis point rate hike from the Bank of Korea (BoK), signaling the start of a tightening cycle in response to rising inflation and resilient economic growth. Per the full note from ing-think, South Korea's inflation has firmed, prompting the BoK to reassess its monetary policy stance. Meanwhile, Indian inflation is projected to tick up slightly in June amid pressures from core inflation, while mixed signals from China reveal ongoing economic complexities. Collectively, these developments form the basis for a cautious but bullish outlook on the Korean won against the backdrop of broader Asian FX trends.