Fed rate hike puts BOK under pressure over further rate increase
The Bank of Korea (BOK) is facing growing expectations of another rate hike before the end of the year after the U.S. Federal Reserve raised its policy rate by 0.25 percentage points in its first hike since July 2023, widening the interest rate gap between Seoul and Washington to 1 percentage point, analysts said Thursday. While persistent inflationary pressures continue to warrant monetary…
The Bank of Korea (BOK) is under pressure to consider an additional rate increase following the Federal Reserve's 0.25 percentage point policy rate hike on Thursday. This brings the interest rate differential between Seoul and Washington to a 1 percentage point gap, as noted by analysts. Despite persistent inflationary pressures justifying monetary action, the widening interest rate gap with the U.S. could further weaken the Korean won.
Additionally, renewed instability in housing prices within the Seoul metropolitan area is also seen as a potential catalyst for another rate hike. However, some market observers anticipate the BOK to temper the pace of rate hikes, as it has already raised rates twice in July and August to tackle domestic inflation, a housing market overheating, and the expectation of tighter U.S. monetary policy.
The central bank may choose to evaluate the effects of these measures and reduce the financial burden on vulnerable households and small businesses.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Why did Bitcoin and Ethereum move in near-perfect lockstep after the Fed rate hike? e27.co
- Singapore, Asia markets shrug off US Fed rate hike businesstimes.com.sg
- Asian stocks are mixed after Wall Street slips following Fed’s rate hike decision winnipegfreepress.com
- Trump lashes out on US Fed chief after rate hike thevibes.com
- Tokyo stocks rise after Fed's rate hike eases economic outlook concerns mainichi.jp
- Stocks almost flat late Thu. morning after Fed rate hike en.yna.co.kr
- Fed rate hike puts BOK under pressure over further rate increase koreatimes.co.kr
- US dollar hits seven-week high after Fed rate hike english.ajel.sa
