Bank of Korea to continue tightening into 2022

We were among the first forecasters to call that the Bank of Korea (BoK) would begin tightening monetary policy this year and it duly delivered today, raising the policy rate by 25bps to 0.75%. Given the hawkish comments in the press conference, we now think the next hike will come in November. And we expect the tightening cycle to continue well into 2022.

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