South Korea inflation eases in February – ANZ

Dhwani Mehta FXStreet

Analysts at Australia and New Zealand banking group (ANZ) offer a quick reaction to the South Korean inflation report released earlier on Tuesday.

Key quotes:

“South Korea’s headline inflation eased in February to 1.1% y/y, the first pullback in five months. The moderation was broad-based, with most major components softening.

With economic activity slowing, price pressures are likely to remain weak.

The key swing factor for monetary policy in the near term will be the COVID-19 outbreak and its impact on growth, in our view.

As things stand, we think it’s still too soon to rule out a rate cut by the Bank of Korea.”

South Korea confirms 600 new coronavirus cases, 3 new deaths

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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