KF - Korea: The Central Bank Hikes Policy Rate By 25bp
By Prakash Sakpal, Economist, Asia
Today’s rate hike resets the Bank of Korea’s policy for yet another long pause, possibly throughout 2019. We are reviewing our forecast of one 25bp hike in the third quarter of 2019.
A 25bp BoK policy rate hike
The Bank of Korea’s Monetary Policy Board voted to increase the Base Rate by 25 basis points (bp) to 1.75% at their meeting today. The rate hike doesn’t come as any reprieve to the Korean Won (KRW) from its recent underperformance vis-Ã -vis Asian currencies. Despite the rate hike, the USD/KRW spiked above