South Korean news agency, Yonhap, cited the comments from the country’s Prime Minister Lee, as he said that the government will draft a supplementary budget in April.
“South Korea’s headline inflation slipped further in March to 0.4% y/y. Most major components weakened, with food and transport as the exceptions. Accordingly, core inflation also slowed. Nonetheless, we doubt the Bank of Korea (BoK) will react with a rate cut unless there is a significant deterioration in the growth outlook. We expect the BoK to stand pat this year and leave fiscal policy to do the heavy lifting in terms of supporting economic activity,” analysts at ANZ noted.
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