Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>We expect interest rates will be declining by the end of the year. BoK Governor Lee Ju-yeol is running out of excuses not to ease monetary policy. Inflation is trending down and is below the central bank’s 2% target. Household borrowing has been slowing for months while the Korean economy is rapidly losing growth momentum. Lower rates will bring little relief however. The outlook is dim. We reiterate our underweight call on Korean equities.</p>

We expect interest rates will be declining by the end of the year. BoK Governor Lee Ju-yeol is running out of excuses not to ease monetary policy. Inflation is trending down and is below the central bank’s 2% target. Household borrowing has been slowing for months while the Korean economy is rapidly losing growth momentum. Lower rates will bring little relief however. The outlook is dim. We reiterate our underweight call on Korean equities.

Samsung KODEX Leverage ETF Equ (122630 KS)

Mirae Asset TIGER KOSDAQ150 Biotech ETF (261070 KS)

Korea Interest Rates - Next Move Down