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SOUTH KOREA: FWDS Reprice Rate Expectations following BOK

SOUTH KOREA
  • The cut in interest rates yesterday by the BOK was anticipated by forecasters yet forward rate expectations prior to the meeting, less convinced.

  • In the period since 20 Feb this year (the 20th saw PPI steady at 1.7% and Consumer Confidence weak) up to the day prior to the BOK meeting, the 3 month forward 1 month (NDIRS) had priced in 7bps of cuts and a full cut priced by 6 months.  

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  • The cut in interest rates yesterday by the BOK was anticipated by forecasters yet forward rate expectations prior to the meeting, less convinced.

  • In the period since 20 Feb this year (the 20th saw PPI steady at 1.7% and Consumer Confidence weak) up to the day prior to the BOK meeting, the 3 month forward 1 month (NDIRS) had priced in 7bps of cuts and a full cut priced by 6 months.  

Keep reading...Show less