Korean inflation ends in 2023 on track. Up 3.2% in December 2022 and unchanged from the previous month, it continues on a downward trend and is close to the objectives of the Bank of Korea, which should reassure the country’s monetary authorities. Having reached 5.1% over 2022, it had forced Seoul to make several policy rate hikes, including the last in January 2023, to set the principal at 3.5%.
Since then, the monetary authorities of the Calm Morning Country have taken the time to see how inflationary pressures are changing while signalling that key rates should no longer rise.
Now, with less inflationary pressure and what is happening elsewhere, everything leads to believe that the Bank of Korea’s next move will be a decline, which will stimulate the economy.
Often impacted by the polemics between its primary customer (China) and the guarantor of its security (the United States), South Korea experienced the year 2023 in half. Despite this, its equity market ended the year with a gain of nearly 17%.
We continue to invest in them as part of our neutral and dynamic portfolio.