Bank of Korea Governor Rhee comments following this morning's 'on hold' rate decision:
- Tuesday's rate decision was unanimous
- Five board members wanted to keep the door open for one more possible rate hike
- Central bank will not respond to specific fx rate level
- High public utility price rises in 2023 to be responsible for high core inflation
- Annual inflation to fall below 4% in Q2
- Uncertainty still high over inflation projection for H2
- Many board members think market expectations for rate policy are excessive
- Many board members see market expectations for rate cut this year as somewhat excessive
- Consideration of rate cut possible only when inflation is headed far below projection
- Chances of real estate market's soft landing increased vs last year
- Several board members see need to give warning against early rate cut expectations
Headlines via Reuters
