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The Bank of Korea looks increasingly likely...>

KOREA
KOREA: The Bank of Korea looks increasingly likely to hike rates further over
the course of 2018, with interest rate swap markets pricing in 25bps of hikes
over the next 6 months. The chances have risen over recent days following BOK
Governor Lee Ju-yeol's comments on May 5 saying the central bank should raise
rates when it becomes possible to do so.
- South Korean news agency Yonhap reported Lee saying that financial imbalances
may increase should BOK maintain the current interest rate when Korea's economy
continues to grow at 3% and inflation consolidates at 2%. While the BOK has
tried backtracking, issuing a statement that Lee was speaking only in general
terms, the central bank clearly has a hawkish bias, and MNI expects at least one
25bps hike over the remainder of the year. (MNI - For Full Story See Main Wire
At 18:57 BST 05/08)
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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