BOK leaves benchmark rate unchanged at 0.50%, USD/KRW bounces

The South Korean central bank, the Bank of Korea (BOK) left the key interest rates unchanged at 0.50% at its November monetary policy meeting held this Thursday.

The decision was on the expected lines, as the economic recovery gathers momentum despite looming concerns about rising household debt.

BOK’s economic forecasts

Sees 2021 growth at3.0 % vs 2.8% before.

Sees 2020 GDP growth at -1.1% vs -1.3% previously.

Sees 2021 inflation at 1.0% vs 1.0% before.

Sees 2020 inflation at 0.5% vs 0.4% previously.

USD/KRW bounces-off lows

USD/KRW jumped from daily lows of 1,105.94 on the BOK’s status-quo, now trading at 1.106.54, almost unchanged on the day.

The selling pressure around the won can be also attributed to worrisome COVID-19 stats released in the last hour.

On Thursday, South Korea’s confirmed coronavirus cases topped 500 for the first time since March.