Bank of Korea defies expectations of 0.25% rate cut
|- Bank of Korea avoids rate cut, holds benchmark rate at 1.25%.
- USD/KRW rises after the announcements.
- Coronavirus headlines seem to keep the driver's seat.
Early on Thursday, Bank of Korea conveys its monetary policy decision for February month. The South Korean central bank surprised global markets by defying the calls of a 0.25% rate cut while holding the benchmark rate unchanged at 1.0%.
“Sixteen of 26 analysts surveyed by Reuters predicted the Bank of Korea’s (BOK) seven-member board would cut the policy rate to 1.00% at its February meeting in a pre-emptive move,” said Reuters before the meeting.
Following the decision, USD/KRW rises to the intra-day high of 1,216.42 as news concerning coronavirus (COVID-19) crossed wires.
Among them, Yonhap’s confirmation that the US and South Korea have postponed the joint military drills and an addition to 334 COVID-19 cases to total 1,595 grabbed major attention.
That said, the market's risk-tone remains heavy with the S&P 500 Futures declining 0.86% to 3,084 and the US 10-year treasury yields testing 1.32% mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.