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President Lee Jae-myung cited Morgan Stanley's forecast of a 3.5% Bank of Korea base rate by Q1 next year on X on August 30, warning property speculators to take note, which reversed the dovish tone that briefly lifted Seoul's bond market after the August MPC meeting. A politically endorsed hiking path repricing the terminal rate higher pressures short-end KTB yields, tightens won liquidity, and is a headwind for KOSPI rate-sensitive sectors including construction, banks and household-credit-linked names. Watch whether the BOK's next rate decision and housing-price data validate the 3.5% path, since official pushback on that forecast would quickly re-steepen the curve and ease USD/KRW pressure.
As a Macro signal, watch whether it changes price action, volatility, or flows around KRW=X, KOSPI.
Original Source: 연합인포맥스
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