We expect Korea’s central bank to raise its base rate by 25bp to 3.25% on Friday. This is also the consensus view. GDP growth was strong at the start of the year while core inflation, which excludes food and fuel, is high and looks set to climb further. We expect the policy rate to reach 4.0% by end-2011. There is also room for the won to appreciate in the fight against inflation without materially affecting exporters.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services