Bank of Korea cut benchmark interest rates for a second straight meeting in a surprise move:
- first time since 2009 the central bank cut interest rates for two consecutive meetings
- BoK also lowered its forecasts for economic growth and inflation
South Korean won, bond yields weakened. KOSPI caught a wee bid.
More from the BoK now:
- The Bank of Korea will thoroughly assess the impact of the base rate cut on inflation, growth, and financial stability.
- Consumption is expected to continue a moderate recovery.
- Exports growth is likely to fall.
- The Bank of Korea will assess trade-offs among policy variables in determining the pace of further cuts.
- The pace of economic recovery will depend on consumption, the trade environment, and IT exports.
- It is important to remain cautious concerning the potential for high exchange rate volatility.
- The won-to-dollar FX rate has risen considerably.
- Inflation has maintained a stabilization trend.
- The future path of inflation will be affected by FX movements, oil prices, economic growth, and public utility cost adjustments.
This article was written by Eamonn Sheridan at www.forexlive.com. Source