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The Bank of Korea raised its base rate by 25bp to 2.75% at the July 16 Monetary Policy Board meeting, and Governor Shin Hyun-song explicitly kept the door open to another hike in August, framing the move as the start of consecutive tightening rather than a one-off. Continued hikes would pressure KOSPI valuations and rate-sensitive sectors while supporting the won, narrowing the policy gap that has weighed on USD/KRW. Watch upcoming CPI prints against the 2.0% target, as Shin tied further tightening to confidence that inflation is converging to that level.
As a Macro signal, watch whether it changes price action, volatility, or flows around KRW=X, KOSPI.
Original Source: 토큰포스트
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