S&P’s Roache: BOK to stand pat all the way through 2022

Dhwani Mehta FXStreet

The Bank of Korea (BOK), South Korea's central bank, is likely to hold its interest rates, currently at 0.50%, "all the way through 2022," Shaun Roache, Chief Economist at S&P Global Ratings, told an online media briefing on Wednesday.

He said that additional policy support will be needed “as jobs recovery, inflation and the overall economic revival after the COVID-19 vaccine distribution are expected to take some time.”

His comments came after the South Korean Q4 GDP beat expectations, arriving at 1.1% QoQ vs. 0.7% expectations on Tuesday.

Meanwhile, USD/KRW extends the early bounce to regain 1,100 amid broad-based US dollar bounce and fresh covid concerns in the Asian nation.

The Korean won fell after the country reported a jump in infections on Wednesday. “More than 100 cases were confirmed overnight among people linked to a church and its mission school in Gwangju, about 270 kms (168 miles) south of Seoul, officials said. Another 171 cases had been linked to an affiliated school in the city of Daejeon since Jan. 17,” per Reuters.

The spot was last seen trading at 1,104, up 0.27% 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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