South Korean Won's Strength Could Moderate Core Inflation
Dow Jones
Sep 09
0812 GMT - The won's strength against the dollar could moderate underlying inflation in South Korea, says Citigroup economist Jin-Wook Kim. If the local currency strengthens by 10% against the greenback, core inflation would fall by around 0.35 percentage point over a year, Kim writes in a note. He expects the Bank of Korea to hold the policy rate steady at the coming October meeting after two consecutive rate increases in July and August to curb inflationary pressure. Citi maintains its earlier view that the BOK would raise interest rates by 25 basis points each in November 2026 and February 2027, he adds.
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