Goldman Sachs' Kwon Expects BOK to Raise Rate to 1.5%

The discussion involves an analysis of the Bank of Korea's potential rate hike amidst low inflation and industrial production numbers. Analysts anticipated a rate hike despite weaker October figures. The focus is on inflation, output gap, and financial stability. Korea's monetary policy is considered accommodative, with concerns about low interest rates affecting asset prices and financial stability. The conversation highlights the balance between rate hikes and economic stability.

What is the significance of inflation being below the Bank of Korea's target?

What concerns are raised regarding financial stability in South Korea?