BoK Emphasise Gradual Adjustment, Futures Lower After Hike

Futures drop after the BoK hiked rates, the BoK hiked rates 25bps to 0.75%. The statement emphasized caution around coronavirus developments and that any policy adjustments would be gradual. BoK Governor Lee has said previously that one or two hikes should be seen as normalization not tightening. 3-Year future down 10 ticks at 110.25, 10-Year future down 24 ticks at 127.56, both contracts off session lows after an initial dip lower post-announcement.

• A key excerpt from the statement: "The Board will gradually adjust the degree of monetary policy accommodation as the Korean economy is expected to continue its sound growth and inflation to run above 2% for some time, despite ongoing uncertainties over the virus"