BOK’s Lee: Will maintain accommodative monetary policy stance

Dhwani Mehta FXStreet

“The central bank will maintain accommodative monetary policy stance,” the Bank of Korea (BOK) Governor Lee Ju-yeol said at the post-monetary policy press conference on Thursday.

Additional comments

Growth to be above Feb projection.

Inflation to be above Feb projection.

Inflation to be around 2% for some time before falling.

Uncertainties on pace of economic recovery is high.

Economic recovery has expanded somewhat.

To monitor severity of COVID-19 spread.

Recovery to continue on exports, investment.

Earlier today, the South Korean central left the key interest rates steady at 0.50% at its April monetary policy meeting, noting that the rates are likely to be maintained at 0.50% throughout this year.

Market reaction

USD/KRW sustains the rebound from six-week lows on the BOK’s rate decision, currently trading at 1,118.12, as the dovish outcome weighs on the Korean won. The spot is up 0.20% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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