BoK expected to keep rates unchanged – UOB

Lee Sue Ann, Economist at UOB Group, sees the BoK keeping its policy rates on hold at its upcoming meeting.

Key Quotes

“Having cut interest rate twice since July 2019, the BoK continued to signal room for further cuts but also said it remained mindful of financial imbalances and is reviewing the short-term impact from earlier rate cuts. We now expect the BoK to be on hold in 1Q20 with further easing being contingent on the deterioration in the economic outlook. Meanwhile, the BoK has indicated that it is not prepared to use monetary policy tools other than interest rate yet”.