The Bank of Korea (BOK), South Korea’s central bank, is likely to hold its interest rates, currently at 0.50%, “all the way through 2022,” Shaun Roache, Chief Economist at S&P Global Ratings, told an online media briefing on Wednesday.
He said that additional policy support will be needed “as jobs recovery, inflation and the overall economic revival after the COVID-19 vaccine distribution are expected to take some time.”
His comments came after the South Korean Q4 GDP beat expectations, arriving at 1.1% QoQ vs. 0.7% expectations on Tuesday.
Meanwhile, USD/KRW extends the early bounce to regain 1,100 amid broad-based US dollar bounce and fresh covid concerns in the Asian nation.
The spot was last seen trading at 1,104, up 0.27% on the day.
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