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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH KOREA
South Korean Feb consumer sentiment continued to tick up in terms of the headline result. We are now at 101.9, from 101.6 in Jan. We are comfortably above mid 2022 lows. The first chart below overlays this headline series against GDP y/y growth. Current consumer sentiment readings are consistent with a resilient GDP backdrop.
- In terms of the detail, it was mixed. Expectations around the domestic economic situation and employment ticked down slightly. The current situation though ticked higher. Spending plans were either unchanged from Jan or ticked down slightly.
Fig 1: South Korean Consumer Sentiment Versus GDP Y/Y
Source: MNI - Market News/Bloomberg
- In terms of prices, the expected inflation level was unchanged at 3%. The chart below overlays this series against headline CPI in y/y terms.
- We are comfortably off cyclical highs, albeit arguably not back to levels consistent with the inflation target for the BoK. The authorities have warned headline inflation pressures may stabilize somewhat in coming months. This would also be consistent with less favorable base effects.
- The BoK meets this Thursday but is widely expected to remain on hold (current policy rate is 3.50%).
Fig 2: South Korean Consumer Inflation Expectations Versus CPI Y/Y
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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