VIEW: CORRECT: Goldman Still Expect One Further Hike

Corrects Title Of Previous Bullet

Goldman Sachs note that “the Bank of Korea's MPC raised its policy rate to 3.50%, delivering a consecutive 25bp hike after November. The meeting outcome was in line with consensus expectations.”

• “Two MPC members cast dissenting votes calling for an unchanged policy rate, for the first time since October.”
• “The forward-looking section of the statement turned notably less hawkish, with the phrase on the need for "continued rate hikes" removed for the first time since July, and the sequence of key consideration factors rearranged towards growth and financial stability risks.”
• “MPC's opinion on the terminal rate was equally split between 3.5% and 3.75%, and the Governor kept the door for future rate hikes open during the press conference.”
• “We maintain our view that the BOK is unlikely to deliver a back-to-back hike in February and expect one more 25bp hike in Q2, most likely in May to a terminal rate of 3.75%, under our baseline scenario of Fed’s terminal rate of 5.00-5.25%.”