Asia Economist at Capital Economics.
"The central bank cut by 25bp in Oct and has been reluctant to loosen its policy settings in back-to-back meetings this year. As such, all 16 analysts surveyed by Bloomberg, including ourselves, had expected Korea’s base rate to be unchanged" Sukhy notes.
"Rate cuts are unlikely in the near term. Although GDP growth fell to a three-year low of 1.6% y/y in Q3, monthly data suggest that the slowdown has bottomed out. In particular, industrial production rose m/m for the first time in four months in Sept and exports returned to y/y growth in Oct. Better trends in China (Korea’s main trade partner) should provide support" Sukhy adds.