Traffic Lights Suggest Korea’s 2018 Hike Was One-and-Done

Bloomberg Economics’ traffic lights dashboard suggests the Bank of Korea’s November rate hike was a one-and-done move. The dashboard of key factors -- green signals that conditions may warrant looser policy, red signals that conditions may warrant tighter policy -- shows the BOK tapped the brakes in November despite a go signal for continued accommodation. With the indicators now tilted even further toward accommodation, the chances of another hike appear remote.