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Inflation Forecasts Firm, Growth Nudged A Touch Lower

BOK
The forecast changes by the BoK were broadly in line with sell-side expectations. The 2023 and 2024 inflation prints were nudged higher relative to the August projections.
  • 2023 now seen at 3.6% (prior 3.5%)
  • 2024 now seen at 2.6% (prior 2.4%)
  • 2025 inflation is projected at 2.1% (so just a touch above the target)
  • On growth 2023 unchanged at 1.4%
  • 2024 at 2.1% (prior 2.2%)
  • 2025 growth at 2.3%
  • USD/KRW is down slightly post the decision, but this looks to be reflective of broader USD softness. The 1 month last near 1289, little change versus NY closing levels.
  • Korean 10yr futures were holding onto earlier gains (per BBG).

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