Bank Desk Views On Today's BoK MonPol...>

SOUTH KOREA: Bank Desk Views On Today's BoK MonPol Decision:

- ANZ: We exp. policy rate unch. Concerns about financial stability risks, which

were the main driver of the BoK's rate hike last Nov, have eased. A challenging

growth outlook & benign inflation suggest the BoK is likely to keep its policy

rate on hold throughout '19.

- Barclays: We expect the BoK to stay on hold & its tone is likely to remain

cautious. The bank will probably attempt to balance its rhetoric by highlighting

a possible positive outcome from US-China trade talks, improved sentiment in

financial markets and slower Fed normalisation potentially mitigating some

downside risks to the economy. But ongoing weakness in exports and the soft

labour market are likely to keep most members' stance cautious.

- BofAML: We expect the BoK to keep the policy rate at 1.75% after the hike in

Nov '18. We continue to expect the BoK to keep the policy rate on hold for the

rest of '19 as (1) policy focus seems skewed to the fiscal side (2) slowing

domestic economy at an expected pace (3) muted inflation due to supply side

factors (4) sluggish labor market, which could call for a supplementary budget.