Bank of Korea biding its time, but rate hikes lie ahead

The Bank of Korea (BoK) unexpectedly held its policy rate at 2.25% today. Concerns about rising global uncertainties tipped the balance in favour of no change, despite the BoK expecting solid GDP growth and that inflation will gather pace. We have revised our policy rate forecast but still see the base rate ending next year at 3.5% and anticipate that the won will strengthen.

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