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Economist at UOB Group Ho Woei Chen, CFA, feedback on the potential transfer on charges by the Financial institution of Korea later within the month.
Key Takeaways
“South Korea’s headline and core inflation continued to climb in Apr. The headline CPI was above 4% for the second straight month at 4.8% y/y, 0.7% m/m (Bloomberg est: 4.4% y/y, 0.4% m/m) from 4.1y/y, 0.7% m/m in Mar, the best since Oct 2008.”
“A back-to-back 25 bps rate of interest hike to 1.75% on 26 Might is pretty doubtless given the near-term inflationary pressures since there is not going to be an MPC assembly in June and the next assembly will solely be in July. Minutes of the Apr assembly highlighted issues over wage-price spiral and the near-term concentrate on taming runaway inflation dangers versus supporting progress.”
“BoK can be updating its progress and inflation forecasts on the Might assembly. Regardless of the excessive stage of exterior uncertainty, South Korea’s economic system is more likely to stay on monitor to succeed in a 2.7% GDP progress this yr.”
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