South Korea: BoK expected to keep rates unchanged – UOB

Lee Sue Ann, Economist at UOB Group, sees the Bank of Korea maintaining its policy rate unchanged at 3.50% on August 24.

Key Quotes

The BOK maintained its GDP growth and headline inflation forecasts for 2023 at 1.4% and 3.5% respectively. Core inflation is projected to continue its slowing trend but may turn out to be slightly higher than the May forecast of 3.3%.

Considering the soft economic outlook and the general slowdown in inflation, we continue to expect the BOK to stay on hold for the rest of 2023.