Thursday, August The Bank of Korea logo is displayed on the central bank’s headquarters building in Seoul, South Korea, on May 16, 2018. South Korea’s central bank raised interest rates for a second consecutive meeting on Thursday to reduce consumer inflation from a 13-year high, and raised its projections for prices to rise to the highest level since 2008.
Jean Chung | Bloomberg | Getty Images
The Bank of Korea is set to hold an emergency meeting on Wednesday after South Korean President Yoon Suk-yeol lifted a surprise martial law declaration overnight.
The central bank will convene an extraordinary board meeting at approx 9 am local time. Last week, the The BOK cut its benchmark interest rate by 25 basis points In a surprise move.
Late on Tuesday, Yun declared emergency martial law and mobilized the army. Within hours, the National Assembly voted to lift the emergency order, prompting Yoon to lift martial law early Wednesday. Yoon announced that military units that had been deployed had also been withdrawn.
“In our view, the negative impact to the economy and financial markets may be short-lived as (the) uncertainties on the political and economic environment can be quickly mitigated in the wake of proactive policy response,” Citi analysts said in a note.
South Korean Finance Minister Choi Sang-mok He took the oath on Wednesday To pump unlimited liquidity into the financial markets, to stabilize it if necessary.
South Korean stocks experienced significant ups and downs in the US on Tuesday amid political turmoil in Korea. The iShares MSCI South Korea ETF (EWY)It tracks more than 90 large and mid-sized companies in South Korea, which fell 7% to hit a 52-week low before cutting losses to close 1.6%.
South Korean stock markets will open at the normal time of 9 KST.
