November 08, 2024 01:48 GMT
SOUTH KOREA: Central Bank Fires Inflation and Growth Warning.
SOUTH KOREA
- Bank of Korea’s Deputy Governor Ryoo suggested that ‘uncertainties are running high surrounding global growth and inflation, as well as monetary policy paths for major nations’ during a meeting Friday morning.
- Ryoo added ‘we cannot rule out the possibility of volatility in foreign exchange and financial markets growing further,’ as per BBG.
- Ryoo went further to add ‘the BOK will strengthen market monitoring to assess the impact of potential policy changes under the new U.S administration and be fully prepared for timely response when needed.’
- The comments came following similar statements from the finance minister on Thursday that ‘If the policy stance that has been stressed by president-elect Trump becomes realized, the impact on the Korean economy is expected to be significant,’ reported Yonhap.
- The US Election saw a rally in the USD with the KRW falling dramatically.
- Given Korea’s reliance on imports for their energy needs, their economy is exposed to FX and commodity price volatility and tariffs proposed by the incoming President could have material impact on both going forward.
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