BOK’s Decition on holding rate at 2.25% is right decision. What market expectaion is not what it should be but what they want to.
Although JS Kim, Chief of BOK, annouced that BOK worries about the rise of inflation but inflation rate is a composite index of ceratin kinds of products such as computer, apple.
But the real issue is real economy. very recently Korean government accounced the relaease of housing market, 829 policy. BOK had a lot of pressure on neuralize this policy by increase interest rate.
On the other hand, holding interest rate can be interpreted as lettting houseing price go up. certain kind of price unstability is sensed in jeonse market. People began to rent instead of buying house.
Anyhow let inflation rate go high. that’s the implcation of BOK’s announcement.
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