The Bank of Korea earlier today left is rate unchanged at 3.5%, as expected.
- Premature to be confident that inflation will converge on the target level
- Will maintain restrictive policy stance for sufficient period of time
- To monitor inflation slowdown
- Growth forecast to be consistent with earlier forecast or could be higher
- To monitor financial stability risks
- To monitor economic growth risks
- To monitor household debt growth
- To monitor differentiation in monetary policy operations in major countries
- To monitor developments in geopolitical risks
- Growth to be affected by it sector growth, project finance restructuring
- Inflation to gradually moderate
On the won:
- KRW recently weakened to dollar due to the strong USD and weak neighbouring currencies
