Bank of Korea raises interest rates by 25bp to 2.75%, Walsh emphasizes zero tolerance for persistent high inflation --- W29 Overseas Macro Highlights
- The Bank of Korea unanimously raised interest rates by 25bp to 2.75%, marking the first hike since January 2023, against the backdrop of stronger-than-expected growth, persistent inflation, rising house prices, and a weaker exchange rate. The market expects the year-end interest rate to reach 3.0%. The KOSPI has dropped about 20% from its June 22 peak, mainly due to slower price increases in the storage sector combined with forced liquidations triggered by high leverage.
- Both the overall and core US CPI for June came in below expectations on a month-on-month and year-on-year basis, and the PPI also retreated. The Waller hearing maintained a strong anti-inflation stance, emphasizing zero tolerance for high inflation and refusing to provide guidance on the interest rate path. With inflation improving and Waller's comments remaining hawkish, the probability of rate hikes this year has decreased; however, the volatile US-Iran situation keeps markets cautious about the Federal Reserve's policy outlook.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AMD (AMD.US) Surpasses $1 Trillion Market Cap and Begins Competing for "Computing Power Definition Rights"! Officially Announces $8.2 Billion Acquisition of Fei-Fei Li's World Labs
AMD has agreed to acquire World Labs for $8.2 billion, thereby gaining access to the artificial intelligence startup founded by industry pioneer and researcher Fei-Fei Li. This acquisition is expected to help AMD plan its future hardware launches by bringing in a team of top researchers and their models, as well as deep insights into trends in the field of artificial intelligence.
A Major Reversal Amid the U.S. Bond Selloff! Bond Market Veteran Bianco Turns Bullish for the First Time in Six Years, Calling 5% Yield a "Value Buy Opportunity"
Currently, as benchmark U.S. Treasury yields surge to their highest levels in nearly two decades, bond market veteran Jim Bianco has loosened his bearish stance for the first time and is gradually building long positions as a "value buyer."
New Zealand Dollar steadies near its lows as RBNZ hike bets keep building
Crypto prices
More
