Bank of Korea Softens Hawkish Tone as It Holds Rate Into 2024
- BOK raises price forecasts, but still sees cooling next year
- Fewer board members now see a need to raise rates further
The Bank of Korea (BOK) complex in Seoul.
Photographer: Woohae Cho/BloombergThis article is for subscribers only.
The Bank of Korea softened the tone of its hawkish holding pattern on interest rates while trying to tame speculation over an early policy pivot with warnings about stickier-than-expected inflation.
South Korea’s central bank kept its seven-day repurchase rate at 3.5% in its last decision of the year, a move forecast by all 22 economists surveyed by Bloomberg. The policy rate has stayed at its 15-year high since authorities last hiked in January.