More than half of securities firms “The BOK may raise interest rates further in November” – Daily Good News

▲The Bank of Korea raised the base interest rate to 0.75% on the 26th (Photo Source = Yonhap News)

As the Bank of Korea raised the key interest rate from 0.5% to 0.75% for the first time in 15 months on the 26th, the possibility of a further increase is being mentioned.

“Interest rates are still accommodative,” said Lee Ju-yeol, governor of the Bank of Korea.

However, he added, “The timing of the additional hike will take into account the spread of COVID-19 and the US monetary policy.”

More than half of domestic brokerage firms expected an additional increase at the Monetary Policy Committee meeting of the Bank of Korea to be held in November.

According to the financial investment industry on the 28th, 16 of the 20 securities companies that reported the BOK’s base rate hike were expecting a second hike within the year.

There are two meetings of the Monetary Policy Committee this year, in October and November.

Thirteen of the 16 brokerages expected an additional increase in November, overwhelmingly more than the three brokerages that predicted October.

Mirae Asset, NH, Samsung, Meritz, Kiwoom, Hanwha, Kyobo, Shinyoung, Hi, IBK, Eugene, DB, and KTB all predicted November as the second ‘D-Day’.

These brokerages cited the reasons that the Bank of Korea’s monetary policy has shifted to responding to financial imbalance risks and that it is necessary to observe the policy effects of the interest rate hike in October.

There were three securities firms that expected additional increases in October: Shinhan, Hana, and eBest Investment & Securities.

The reasons were that the BOK could take “preemptive measures” against the financial imbalance and that the negative impact on the real economy has decreased compared to the past despite the spread of COVID-19.

Four securities companies expected the second increase in the first quarter of next year: Korea Investment, KB, Daishin, and SK Securities. In the first quarter of next year, the MPC is scheduled for January and February.

These securities companies are examining the COVID-19 situation and policy effects and predicting that there is a greater possibility of an additional increase in early next year than this year.

Hanwha Investment & Securities[003530]and DB Financial Investment[016610]predicted that there will be additional increases in the first quarter of next year along with November of this year.

Previously, among the 19 securities companies that issued related reports after the Monetary Policy Committee in July last year, 11 brokerages expected their first rate hike in October, the most. Six securities firms predicted the increase in August: Hana, Kiwoom, Daishin, Shinyoung, Hi, and KTB.

Copyright holder (c) Daily Good News. Unauthorized reproduction-redistribution prohibited

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.