South Korea: BoK to remain on hold later in the week – UOB

The Bank of Korea (BoK) is expected to keep rates at 0.50% at this week’s event, according to UOB Group’s Economist Lee Sue Ann.

Key Quotes

“The BoK has cut its benchmark rate by 75bps year-to-date. We expect a halt in interest rate cut at the current base rate of 0.50%, which is a record low.”

“There will be increasing emphasis on non-interest rate tolls as well as greater utilization of fiscal policy as the policy rate is now very close to the ‘effective lower bound’.”

“The BoK will actively purchase government bonds if needed but this is likely to be in the secondary market”.