Speakers:
The Bank of Korea faces a tricky balancing act. The AI boom is powering chip production and tech exports, but domestic demand remains subdued. Inflation concerns were enough to push the Bank to raise rates for the first time since 2023 last month – will it follow up in August, how high could rates go, and what does the divergent performance of Korea’s economy mean for its markets?
On Thursday 27th August, our Asia and Markets teams discussed the outcome of the Bank of Korea’s August meeting and the outlook for the Korean economy and financial markets. In the 20–30-minute session, the team answered your questions on key issues including:
- Growth and inflation: Why isn’t the export boom feeding through to domestic demand? And could stronger growth keep core inflation elevated, even as subsidies cushion the impact of higher energy costs?
- Monetary policy: What does the Bank of Korea’s latest decision tell us about the path for interest rates?
- Financial markets: Can the AI-fuelled equity rally continue, and can the won extend its sharp rebound from multi-year lows?
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