Group 1 - The Bank of Korea maintained the benchmark interest rate at 2.5%, aligning with market expectations and focusing on financial stability amid a recovering real estate market [1][2] - The central bank raised its growth forecasts for 2025 and 2026, reflecting strong exports and steady recovery in private consumption, with 2026 growth expected at 1.8% [1] - The recent increase in Seoul's apartment prices, which have risen for 42 consecutive weeks, raises concerns about financial instability and household debt [2][3] Group 2 - Trade data shows strong performance, with semiconductor exports up nearly 27% and automobile exports up 23% in the first 20 days of November, although risks remain due to high tariffs and global demand uncertainties [3] - The Korean won has depreciated over 2% this month, reaching a near 16-year low, prompting verbal interventions from authorities [3] - The finance minister warned of potential actions if excessive volatility in the foreign exchange market is observed, indicating a proactive stance on currency stability [3]

Core Viewpoint - The 20th Central Committee's Fourth Plenary Session approved the "Suggestions on Formulating the 15th Five-Year Plan for National Economic and Social Development," emphasizing a stable and continuous monetary policy framework that will guide financial market operations during the 15th Five-Year Plan period [1] Monetary Policy Framework - The "scientific and stable" monetary policy aims to balance short-term and long-term goals, economic growth and risk prevention, as well as internal and external factors [1] - The central bank's liquidity toolbox is well-stocked, with a reasonable distribution of terms, allowing for both short-term and long-term liquidity adjustments [2] Liquidity Tools and Mechanisms - The central bank has shifted its focus from quantity targets to interest rate levels, indicating a reduced emphasis on the monetary supply's direct control [2] - Different liquidity tools serve distinct purposes, with reserve requirement ratio (RRR) adjustments being used more cautiously compared to other tools [3] Interest Rate Mechanism - The central bank will adjust the timing of MLF operations to follow LPR announcements, reinforcing the significance of the 7-day reverse repurchase rate as a policy interest rate [3] - The transmission mechanism of monetary policy is structured as "economic growth - policy interest rate - market interest rate," with the 7-day reverse repurchase rate becoming a key determinant for 10-year government bond yields [5] Economic Indicators and Policy Signals - Historical data shows that each round of RRR cuts corresponds with a decline in government bond yields, indicating that RRR adjustments signal policy easing [4] - The frequency of interest rate cuts is lower than that of RRR cuts, suggesting a more cautious approach by the central bank regarding interest rate adjustments [6]