Sumary of BOK head hints at another rate hike in 1st quarter of 2022:
- Bank of Korea Governor Lee Ju-yeol speaks during an online press briefing held at the bank’s headquarters in Seoul, Thursday.
- YonhapCentral bank raises key interest rate by 25 basis points to 1%By Lee Kyung-min Bank of Korea Governor Lee Ju-yeol hinted at another key rate hike in the first quarter of next year, Thursday, in what is widely seen as an attempt to dispel concerns over inflation and soaring household debt.
- The effect of monetary policy could be undermined, in the governor’s view, as outpaced significantly by the stronger-than-expected recovery in the real economy, a reason why Lee considers a prompt drawdown in easing as inevitable.
- Korea relative to its emerging market peers is insulated from financial market volatility caused by growing expectations over a possible rate hike by the U.S. Federal Reserve in the latter half of next year.