RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
RBA Rate Hike Outlook: Impact on AUD/USD and ASX 200 
BoK is expected to remain on hold for the rest of the year. It is believed that the market might have gone ahead of itself in expecting rate cuts for the following reasons:
- Won is much weaker now against the USD and the JPY. Moreover, the pace of the weakening has been a little too much as far as BoK is concerned. In fact, BoK has been intervening on the topside to smoothen the move higher in USDKRW.
- Another rate cut might also increase outflows from Korea, but BoK might not prefer that currently, given the lingering external risks (possible Fed hike, China FX).
- Finally, BoK might want to see the effect of the fiscal stimulus package (announced recently) on the domestic economy before it decides to cut or remain on hold.
