SC, 7expects a unanimous rate hike at the Monetary Policy Board meeting this month…3raises the possibility of additional hikes this year
Standard Chartered (SC) said 7it expects the benchmark rate to be raised unanimously at the Monetary Policy Board meeting this month, and that up to 3more hikes could be possible by year-end,7 it said on 13. SC assessed that growth and inflation are running above earlier forecasts, while a weaker won is adding upward pressure on prices.
Standard Chartered (SC) said 7it expects the benchmark rate to be raised unanimously at the Monetary Policy Board meeting this month, and raised the possibility of up to 3rate hikes by year-end. From investors’ perspective, the key point is that the path of the benchmark rate can affect lending rates, bond yields and financial companies’ profits.
SC economist Park Jong-hoon said in an interview on 13that recent growth and inflation are above the Bank of Korea’s earlier forecasts. He also said downward pressure on the won is widening upward pressure on inflation.
Park said that, looking at recent remarks by Monetary Policy Board members and the minutes, he believes there is already substantial agreement on the need for additional tightening.
As growth drivers, it cited expanded investment in artificial intelligence (AI) and strong exports. The explanation is that these factors are supporting the economic trend while leaving room for monetary policy to be tightened.
This view could alter market expectations and the Bank of Korea’s future direction on interest-rate decisions.7The outlook from SC could serve as an important reference point for investors looking to confirm the policy stance at the monthly meeting.
The remarks were made on 7month 13day.
Sources: 연합인포맥스
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