The Korean won is under pressure despite the benign macroeconomic situation, with the latest GDP data pointing to a contraction. The Bank of Korea is expected to maintain its key interest rate amid rising house prices and KRW exchange rate volatility. Commerzbank currency analyst Moses Lim notes that the USD-KRW rate may remain within a range.
BoK’s cautious approach to politics
“We expect the BoK to leave the key interest rate at 2.5% at its next meeting on February 26.”
“In the case of the BoK, it will likely step up efforts to curb excessive volatility, rather than focusing on any specific level.”
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
