A hold is fully expected, so the market reaction is likely to hinge on the tone of the statement and any signal on the timing of the next hike.
A hawkish hold that keeps a further increase firmly on the table would likely support the won and push short-dated Korean government bond yields higher
Any hint that the cycle is nearing its end could weigh on the currency. For equities, a pause offers some relief to rate-sensitive sectors. The semiconductor-led export boom underpinning growth keeps chipmakers at the centre of the market’s growth story.
A record-scale current account surplus provides an underlying source of support for the won, even as policy expectations drive day-to-day moves. -The Bank of Korea is expected to catch its breath today rather than call time on tightening, with booming chip exports and stubborn price pressures keeping the next hike in view. Summary: All six economists surveyed by Yonhap expect the Bank of Korea to leave its benchmark rate unchanged today The Bank of Korea base rate is currently 3.00% The central bank raised rates in July and August, and a third consecutive hike would be rare Economists expect it to keep a tightening stance, pausing to adjust the pace of policy and assess the timing of further increases Strong semiconductor exports are driving growth, while inflation pressures are coming from both supply and demand The tightening cycle may continue in the short term, according to the survey South Korea’s current account surplus for January to August reached about $279 billion, nearly four times the roughly $70 billion a year earlier Announcment due at GMT / 2100 US Eastern time – The Bank of Korea is expected to leave interest rates unchanged at its policy meeting today, pausing after two consecutive hikes, though economists say its tightening cycle is not yet over. All six economists surveyed by Yonhap News Agency expect the central bank to hold its benchmark rate, which stands at 3.00% following increases in July and