Shocker: South Korea Holds Rates Steady, As Even They're Worried About Stagflation

It’s not just Vietnam that doesn’t want its currency to strengthen.

South Korea has unexpectedly put the breaks on its tightening campaign.

Bloomberg:

The Bank of Korea unexpectedly left interest rates unchanged as it assesses how last month’s increase in borrowing costs affects an economy where quickening inflation has been coupled with slower growth.

Governor Kim Choong Soo and his policy board kept the seven-day repurchase rate at 2.75 per cent, the bank said in Seoul today. The decision was forecast by three of 12 economists surveyed by Bloomberg News. Nine expected a quarter-point boost.

The KOSPI is up nicely on the news:

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