The Bank of Korea is widely tipped to hold interest rates at 3.25% this week. Headline CPI is high and therefore likely to drive that decision but the country’s economic activity is slowing down, warns HSBC.
Korea’s central bank is likely to keep rates on hold this Friday (January 13) despite manufacturing data indicating a slowdown. However, headline inflation remains stubbornly high which strategists believe will be the overriding reason to hold rates at 3.25%.
“So, for now, with headline inflation staying stubbornly above target