RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
Jerome Powell Warns Against Politicizing the Federal Reserve, Defends Democratic Institutions 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
RBI Holds Interest Rates at 5.25%, Cuts India Growth Forecast Amid Rising Global Risks 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
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.
