South Korea just raised rates again — second month in a row, now at 3.00%. And they're telegraphing more coming.
This is what discipline looks like. When inflation runs hot, you don't pause and hope. You keep tightening until something breaks or the data clearly turns.
Meanwhile, markets everywhere are pricing in cuts and pivots. Classic mismatch between what investors want and what central banks are actually doing.
Watch the currency. The won's been under pressure, and if Korea keeps hiking while others hesitate, that spread matters for flows and exchange rates.
Rate differentials drive capital. Always have, always will.
This is what discipline looks like. When inflation runs hot, you don't pause and hope. You keep tightening until something breaks or the data clearly turns.
Meanwhile, markets everywhere are pricing in cuts and pivots. Classic mismatch between what investors want and what central banks are actually doing.
Watch the currency. The won's been under pressure, and if Korea keeps hiking while others hesitate, that spread matters for flows and exchange rates.
Rate differentials drive capital. Always have, always will.
