BOK’s Lee: Growth outlook assumes coronavirus outbreak won't last too long
|South Korean growth outlook assumes the coronavirus outbreak won't last too long, Bank of Korea (BOK), Governor Lee Ju-yeol said in a statement following the announcement of the central bank’s monetary policy decision on Thursday.
Key quotes
The biggest risk to S. Korea growth is coronavirus spread.
Needed to wait a little further to gauge impact from virus.
Thursday's rate decision was not unanimous.
Board member cCo dong-chul was dissenter to Thursday’s rate decision.
Board member Shin in-eok was dissenter to Thursday’s rate decision.
Previous two key rate reductions seem to be working.
Virus outbreak doesn’t seem to have impacted chip output just yet.
Consumption, tourism, retail sectors hit hardest from virus.
Q1 growth could be negative.
Have enough policy room to respond to growth risks if needed.
Need to prepare in case policy room to respond to growth risks disappear.
Can't say property market prices have been stabilized.
Govt's property market measures also has its limits.
Rate cuts doesn't necessarily follow decision to raise ceiling for BOK’s special loans.
USD/KRW keeps highs
USD/KRW consolidates the latest uptick to a daily high of 1,217.09 reached after the BOK’s surprise rates on-hold decision. The Korean won (KRW) failed to benefit from the unexpected status-quo, as rising coronavirus cases in the country continue to undermine the sentiment around the local currency.
USD/KRW rises by 0.20% to 1,214.55, at the time of writing.
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.