South Korea: Rate cut delayed, not denied – ANZ
|The Bank of Korea (BoK) paused amidst a divided consensus to take stock of the numerous policy measures implemented last month, economists at ANZ Bank apprise. USD/KRW is trading at 1218.32.
Key quotes
“The BoK kept its policy rate unchanged at 0.75% as policymakers paused to take stock of measures implemented last month. Two members of the board also dissented in favour of a cut.”
“The BoK highlighted unambiguously the deterioration in the economic outlook. It expects both growth and inflation to fall below its February projections (2.1% and 1.0%, respectively) by a tall margin. Governor Lee also pointed to the ‘high possibility’ of South Korea facing a recession.”
“Given the severe growth downturn facing the economy, the next rate cut could be as soon as in May.”
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.