The Bank of Korea Holds Rates Steady in April
The Seoul Gyopo Guide has defended the Bank of Korea’s careful approach to interest rate increases. Today, the BOK held interest rates steady, and even the UK’s influential Financial Times has noticed what has been said here on many occasions: the domestic economy faces strong, complicated headwinds. In addition, Korea faces demographic changes which may affect its growth potential over the long run. While the Seoul Gyopo Guide suggests that higher interest rates are probably necessary to quell inflation, it is not the “no-brainer” that some believe. It will continue to be a very tricky situation.
Perhaps the BOK haters and Monday-morning quarterbacks have started to realize this. Probably not, but perhaps.