A hold is fully expected, so the market reaction is likely to hinge on the tone of the statement and any signal on the timing of the next hike. A hawkish hold that keeps a further increase firmly on the table would likely support the won and push short-dated Korean government bond yields higher. Any hint that the cycle is nearing its end could weigh on the currency. For equities, a pause offers some relief to rate-sensitive sectors. The semiconductor-led export boom underpinning growth keeps chipmakers at the centre of the market’s growth story. A record-scale current account surplus provides an underlying source of support for the won, even as policy expectations drive day-to-day moves. -The Bank of Korea is expected to catch its breath today rather than call time on tightening, with booming chip exports and stubborn price pressures keeping the next hike in view. Summary: All six econom
With oil, as with real estate, it’s all about location, location, location. The petroleum market has never been truly global, but rather a loosely connected collection of regional sources. When prices diverged, barrels were shuttled to the most lucrative destination. But with freight rates ballooning to prohibitively expensive levels, the region-to-region flow has been disrupted. The result? The the oil market is fragmenting.
Underlying inflation is quite close to BOJ's 2% target Expect underlying inflation to converge to levels consistent with BOJ's target Medium, long-term inflation expectations continue to heighten Financial conditions remain accommodative Real interest rates remain low Delay in adjusting policy could see inflation risks materialise, hurt the economy Upside risks to prices are high The remarks from BOJ deputy governor, Ryozo Himino, above are not anything that we haven't heard of from the central bank. It mainly juts reinforces the narrative that Japan is getting closer to achieving its long-sought inflation target and that the central bank now has to be careful about letting things run too hot. The most striking part of his comments is arguably the warning about delaying policy adjustments. But even then, there's no explicit hint that they are going to push for another rate hike sooner ra
