Today’s Q4 GDP data for Korea show that growth eased in q/q terms, as expected. The economy is likely to regain traction during the course of this year, while policymakers have rightly become more concerned about inflation. Accordingly, we still expect the Bank of Korea (BoK) to hike its policy rate by another 75bp to 3.5% by end-2011, with the next move up likely to come in March or April.