Goldman Sachs note that “following a recent hawkish remark by the new central bank governor, markets have priced in risks of rapid acceleration in policy rate hikes, as much as a total of 175bp increases, to 3.25% by early 2023. In light of the central bank's focus on near-term inflation prints, we expect the BoK to front-load hikes slightly, with a 25bp hike each in May, July, and October, with the terminal rate at 2.5%, which we continue to expect to be reached around mid-2023. We nonetheless do not expect monetary policy normalization in Korea to proceed in big steps, given: (a) predominantly external yet recently fading inflation pressures; (b) strong headwinds to growth; and (c) vulnerability of the economy to sudden rises in borrowing costs.”
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.Free Access
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.
Our credibilityfor delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
We are facing technical issues, please contact our team.
Your request was sent sucessfully! Our team will contact you soon.