Société Générale strategist Kiyong Seong wrote in a report that Bank of Korea Governor Shin Hyun-song sent an “indirect signal” at a press conference after the central bank raised the benchmark interest rate by 25 basis points, indicating that the central bank is still open to continuous austerity in August. The strategist wrote that although Shin Hyun-song's press conference would be viewed as a “real austerity,” the market seemed ready for more austerity results — either a 50 basis point hike or much tougher tighter rhetoric. Seong said, “Given that the policy outlook is highly sensitive to upcoming growth and inflation data, we suspect that fixed interest rate takers may be able to make a profit faster than usual when key data is released.”

Société Générale strategist Kiyong Seong wrote in a report that Bank of Korea Governor Shin Hyun-song sent an “indirect signal” at a press conference after the central bank raised the benchmark interest rate by 25 basis points, indicating that the central bank is still open to continuous austerity in August. The strategist wrote that although Shin Hyun-song's press conference would be viewed as a “real austerity,” the market seemed ready for more austerity results — either a 50 basis point hike or much tougher tighter rhetoric. Seong said, “Given that the policy outlook is highly sensitive to upcoming growth and inflation data, we suspect that fixed interest rate takers may be able to make a profit faster than usual when key data is released.”