Bank of America: New head of the South Korean Central Bank may indicate a tightening stance in the short term.

Bank of America economist Benson Wu said that the incoming Governor of the Bank of Korea, Shin Hyun-sung, may indicate that the central bank will take a more hawkish stance. Wu said, "We expect this incoming governor to take a more cautious policy stance," pointing out that Shin Hyun-sung has expertise in "global liquidity, financial stability, and systemic risk skills" at a time when volatility related to geopolitical tensions and inflation pressures is increasing. While this new appointment may not result in an immediate rate hike in the second quarter, Bank of America pointed out that the dot plot and speeches at the May policy meeting will be key to determining the future policy direction.