23 February 2018
Asia Week Ahead: Weak won may comfort Korean central bank

We have scaled back our Bank of Korea policy forecast from two rate hikes this year to only one in the third quarter

South Korean data deluge

A Bloomberg headline this week that “S. Korea’s Household Debt Hits Record $1.3 Trillion in 2017” punches monetary policy hawks ahead of the Bank of Korea (BoK) monetary policy meeting on Tuesday, February 27. The article cited an 8% rise in household debt in the last year led by surging mortgage debt. The pace of debt growth has slowed from 11.6% in 2016 but it’s still too rapid for an economy growing at only 3%. The article also cited the risk of rising debt defaults as interest rates go up. High household debt has prominently appeared as a risk in BoK policy statements.

Reading time around 48 seconds

Good MornING Asia - 23 February 2018

Inflation dominates the Asian release calendar at a time when markets are particularly prone to upside shocks

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