Bank of Korea leaves its base rate unchanged at 3.5%, as expected

Bank of Korea leaves its base rate unchanged for a 13th straight meeting

  • at 3.5%
  • 38 of 40 analysts surveyed tipped unchanged

Forecasts:

  • 2024 growth at 2.4% (vs 2.5% seen in May)
  • 2024 inflation at
    2.5%
  • 2025 growth at 2.1%
    (vs 2.1% seen in May)
  • Sees 2025 inflation
    at 2.1%

Analyst expectations centre on the October 11 Bank of Korea meeting for a rate cut. Its first rate cut in four years.

The BOK faces offsetting influences:

  • rising apartment prices in Seoul, with government plans inn place to increase housing supply to cool prices
  • inflation has generally cooled otherwise
  • household debt has risen

Governor Rhee Chang-yong’s press conference is due at at 0210 GMT

  • 2210 US Eastern time

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