Bank of Korea is expected to hold rates steady in July, cut to come in Q4

Reuters with its polling result on what is expected from the Bank of Korea.

  • to hold its base rate steady at a 15 year of 3.5% through Q3 2024
  • all 40 economists in the poll expect the BOK to leave the base rate unchanged at the July 11 meeting
  • to cut by 25bps in Q4

Cited as reasoning include:

  • inflation to an 11-month low of 2.4% in June,
    but remaining above the central bank’s 2% target
  • Korean won weakening by more than 6% against the US
    dollar so far in 2024, limiting dovish options for the Bank

This article was written by Eamonn Sheridan at www.forexlive.com. Source