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- BoK holds interest rates unchanged at 3.5%, as expected, but drags USD/KRW below 1,330
BoK holds interest rates unchanged at 3.5%, as expected, but drags USD/KRW below 1,330
Early Thursday in Asia, the Bank of Korea (BoK) held its benchmark interest rates unchanged at 3.5% while matching the market forecasts.
That said, the BoK also kept the forecasts for the 2023 Gross Domestic Product (GDP) and inflation unchanged at 1.4% and 3.5% respectively.
Even so, the South Korean central bank managed to propel the USD/KRW prices to the lowest level in two weeks, down 0.10% intraday near 1,326 at the latest.
It’s worth noting that the BoK has been keeping the benchmark interest rates unchanged since February.
The broad US Dollar weakness, as well as cautious mood ahead of the top-tier US data and a two-day-long annual Jackson Hole Symposium, seems to weigh on the USD/KEW price of late.
About BoK Interest Rate Decision
The BoK Interest Rate Decision is announced by the Bank of Korea. If the bank is hawkish about the inflationary outlook of the economy and rises the interest rates, it is seen as positive, or bullish, for the KRW, while a dovish outlook for the economy (or a rate cut) is seen as negative, or bearish, for the currency.
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