“The upbeat result would give the BOK some relief that it can focus on its inflation-targeting mandate for the time being. The main surprise was, of course, stronger than expected consumption, which was mainly driven by the reopening. However, we think that the reopening-boosted spending is expected to lose its initial steam and normalise in the current quarter. And, going forward, consumer's purchasing power is expected to weaken as the faster-than-expected interest rate hikes should put more burden on debt payment and consumer spending, while inflation is expected to accelerate during the current quarter.”
26 Jul 2022
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