Re-appointed Bank of Korea governor Lee Ju-yeol speaks in a parliamentary hearing

  • Keeping policy accommodative doesn't mean that holding rates where they are now
  • Policy direction is for rate hikes if the economy continues to grow based on current trend

The Bank of Korea raised rates back in November - the first time in six years - but has stood pat since then. And they are not expected to move at all this year, and I would be surprised if they did.

Inflation remains subdued and signs are still not there yet that a reversal in the downtrend will be sustained, and the central bank already has had a tough time in the past year due to the strength in the Korean won. No hurry, really.