VIEW: Barclays: The BoK Reverts To 25s

Barclays note that “overall, we continue to expect the BoK to raise its policy rate by 25bp in October and November, hitting 3.00% by year-end. Mr Rhee noted in his press conference that monetary policy would continue to focus on inflation for some time and that it would be "reasonable" for the policy rate to end the year at 2.75-3.00%. He also downplayed the likelihood of another 50bp rate hike, noting that there would be no change to the more gradual pace of hikes for some time. Mr Rhee highlighted that the policy rate was already in the middle of what it considers to be the range for the neutral rate, but acknowledged that high inflation would provide a case for a move to the upper end of that range.”