BoK Governor Lee says the recent gain in the won (KRW) is a bit fast

Author: Eamonn Sheridan | Category: Central Banks

Earlier today the Bank of Korea, South Korea's central bank, left their key rate on hold and were more optimistic on their economic forecasts.

Governor Lee is speaking now, main points, firstly on the currency:
  •  the recent gain in the won (KRW) is a bit fast 
  • recent won gain is partially due to herd behaviour in the forex market 
  • will act in case of herd behaviour in FX market 
"will act' is a bit of jawboning, hinting at intervention. 

  • The 2020 GDP outlook was upgraded on recovery of exports and investment
  • will maintain an easy monetary policy stance until further signs of recovery
  • the resurgence of COVID-19 cases is reflected in forecasts
  • forecasts are based on the view that the virus impact wases in mide to late 2021
  • assessment is the worst of the economic situation was over in q2
  • currently not a full-scale recovery

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