South Korea: BoK seen on hold this week – UOB

UOB Group’s Economist Lee Sue Ann comments on the upcoming BoK event.

Key Quotes

“In his briefing in late-June, BoK Governor Lee Ju-yeol said that normalization will start ‘at an appropriate time this year’. This further reaffirms the hawkish tilt at May’s monetary policy meeting.”

“While this indicates that the start of normalization could be in 2H21 instead of our forecast of 1Q22, the rate hike process is likely to remain gradual. We will watch for further indications at the upcoming meeting.”