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14 May 2015
BoK might keep rates on hold tomorrow – ING
FXStreet (Barcelona) - Previewing the Bank of Korea’s policy meeting scheduled for tomorrow, Tim Condon of ING, comments that the easing cycle isn’t over yet and Q3 will likely be the timing for a rate cut by the BoK.
Key Quotes
“The Bank of Korea’s MPC holds a policy meeting tomorrow. Decisions typically are announced around 10am local time. Weak growth and low inflation is pushing the analyst consensus toward the view that the BOK easing cycle isn’t over yet. Three of 19 analysts in the Bloomberg survey forecast a 25bp cut to 1.50% tomorrow (INGF on hold).”
“Yesterday’s fortuitously timed release of the IMF Board’s statement on the conclusion of the 2015 Article IV consultation gave the green light to further easing: “sluggish domestic demand is holding back the pace of activity…there remains room for further monetary easing”.”
“We agree that the easing cycle isn’t over but we put the timing of the next cut in the third quarter.”
Key Quotes
“The Bank of Korea’s MPC holds a policy meeting tomorrow. Decisions typically are announced around 10am local time. Weak growth and low inflation is pushing the analyst consensus toward the view that the BOK easing cycle isn’t over yet. Three of 19 analysts in the Bloomberg survey forecast a 25bp cut to 1.50% tomorrow (INGF on hold).”
“Yesterday’s fortuitously timed release of the IMF Board’s statement on the conclusion of the 2015 Article IV consultation gave the green light to further easing: “sluggish domestic demand is holding back the pace of activity…there remains room for further monetary easing”.”
“We agree that the easing cycle isn’t over but we put the timing of the next cut in the third quarter.”