Signs of exports softening, new governor at the BoK

There are growing signs that demand for the region’s exports are starting to soften. Weaker external demand will add to the headwinds facing the region’s economies, which are already being hit by the war in Ukraine and jump in global oil prices. Meanwhile, in his first public comments since becoming BoK governor on Thursday, Rhee Chang-yong acknowledged the difficult trade-off he faces between clamping down on inflation and supporting the economy. The even-handed tone of the new governor adds weight to our view that the BoK will raise interest rates no more than twice more this year.