BoK’s tightening cycle to be gradual, Taiwan boom continues

Although the Bank of Korea struck a hawkish tone yesterday, today’s weak activity data and the challenging outlook for domestic demand suggest that any tightening cycle is likely to be gradual. Meanwhile in Taiwan, despite an economy that is growing at its fastest pace in decades, subdued inflation and government measures to contain energy-price pass-through mean that the central bank is unlikely to rush into raising interest rates.