Free Trial

MNI BoK Preview - April 2024: On Hold Amid Sticky Headline Inflation

BoK to hold steady at the April policy meeting

EXECUTIVE SUMMARY

  • The firm sell-side consensus and our own bias rests firmly with an on-hold outcome at tomorrow's BoK policy meeting. Sticky headline inflation pressures, along with still elevated consumer inflation expectations, suggest there is no need to rush into an easing bias.
  • Offshore developments have also been on the hawkish side, as Fed cuts get pushed back further into 2024, while fresh highs in USD/KRW back to late 2022 may also factor into BoK thinking.
  • All in all we expect the BoK to push back against any near term easing expectations. The central bank has stated as much in recent commentary. We also expect Governor Rhee to keep easing expectations for the second half of the year as quite vague and not commit to any predetermined path.
  • Full preview:
  • BoK Preview - Apr 2024.pdf



142 words

To read the full story

Close

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.

EXECUTIVE SUMMARY

  • The firm sell-side consensus and our own bias rests firmly with an on-hold outcome at tomorrow's BoK policy meeting. Sticky headline inflation pressures, along with still elevated consumer inflation expectations, suggest there is no need to rush into an easing bias.
  • Offshore developments have also been on the hawkish side, as Fed cuts get pushed back further into 2024, while fresh highs in USD/KRW back to late 2022 may also factor into BoK thinking.
  • All in all we expect the BoK to push back against any near term easing expectations. The central bank has stated as much in recent commentary. We also expect Governor Rhee to keep easing expectations for the second half of the year as quite vague and not commit to any predetermined path.
  • Full preview:
  • BoK Preview - Apr 2024.pdf