The Bank of Korea (BoK) decided today to increase the base interest rate by 25 basis points to 3.50 percent. Economists at TD Securities expect the win to strengthen in the coming weeks. LESS ACCELERATION „The BoK raised its 7-day repo rate by 25 basis points to 3.50%, as widely expected. However, the decision was not unanimous, as the two members who opposed the decision voted to delay the rates. ” Although there was no clear signal that the BoK has reached the terminal, we believe that the bar is high for another hike in the coming months. Weaker growth, corrosive inflationary pressures and a strengthening KRW suggest there is less need for tightening. Also, the market no longer appreciates without stretching. However, we agree that pricing in interest rates for the next six months is premature.” „However, the KRW is likely to remain the main beneficiary of USD weakness in the coming weeks.”