South Korea: BoK is seen keeping rates unchanged – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank of Korea (BoK) could likely leave the policy rate unchanged at 1.00% at its meeting on Friday.

Key Takeaways

“The BoK said the benchmark rate is still below the neural level. Barring a sharp downturn in its economy, we continue to project the next 25 bps rate hike in 1Q22, likely in February.”

“If inflation becomes more broad-based, the BoK may have to raise interest rate by another 25-50 bps between late-2022 to 2023.”