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Bank of Korea rate-hike streak risk stays alive after July stance
Societe Generale says the July Bank of Korea statement was more hawkish than May and highlights upcoming GDP, GDI, and inflation data as key to the next decision.
Societe Generale’s Kiyong Seong said the risk of a back to back policy rate hike from the Bank of Korea remains in focus after the central bank raised rates by 25 basis points to 2.75%. The call is supported by a unanimously hawkish Monetary Policy Committee, Seong noted.
FXStreet reports Seong assessed that the July policy statement was more hawkish than the May statement. The view is reinforced by comments from Governor Shin, which keep the option of another consecutive hike at the 27 August meeting open.
The note also points to a set of upcoming macro releases as central to the policy path, including GDP, GDI, and inflation data. Those figures are expected to help determine whether the Bank of Korea follows through on the next step.
Overall, the analysis frames the July guidance and governor messaging as keeping near term tightening expectations active into late August, while investors await the next batch of economic data for confirmation.