In its statement the Bank dropped the phrase ‘sufficient period of time’ in saying it will maintain a restrictive policy stance. Giving a clue that cuts are on the horizon. but not today.
The South Korean economy has continued divergence between domestic demand and exports.Growth will be affected by the IT industry and recovery in consumption.The South Korean economy is expected to continue a moderate growth trend.South Korean inflation is likely to continue its slowing trend.The inflation path will be influenced by global oil prices, foreign exchange movements, and food prices.The Bank of Korea will examine the proper timing of rate cuts.It is essential to assess the impact of government measures concerning the housing market.The Bank of Korea will monitor household debt growth.The Bank of Korea will monitor Seoul housing prices.The Bank of Korea will thoroughly assess trade-offs among inflation, growth, and financial stability.Confidence is greater that inflation will converge on the target level.
Headlines via Reuters
This article was written by Eamonn Sheridan at www.forexlive.com.
