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A stronger-than-expected recovery in the global semiconductor industry and additional economic stimulus measures at home and abroad are upside risks to economic growth, the Bank of Korea said on Thursday, noting that downside risks include a prolonged pandemic and heightened US-China tensions.

The BOK has made no specific reference to the recent rise in 10-year interest rates in comments from officials following their earlier decision to leave policy settings unchanged, taken by some observers that the central bank isn't too concerned by higher yields at present and is unlikely to step in try an dampen longer-dated yields.

South Korean benchmark 10-year bond yield

Source: Bloomberg

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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