May 22, 2024 00:35 GMT
MNI BoK Preview - May 2024: On Hold, Easing Timeline Likely Delayed
The BOK is expected to hold rates steady, with focus on easing risks in H2
Asia Bank - PreviewBank of Korea - PreviewHomepageEM Central Bank ReportsEM Central Bank PreviewEmerging Market News
EXECUTIVE SUMMARY
- None of the economists surveyed by Bloomberg see a change at tomorrow’s BoK policy meeting. This is also our firm bias, which would leave the policy rate at 3.50%, which is where it has been since January last year.
- Overall, our sense is that the BoK is likely to retain confidence in a further softening in the inflation backdrop as we progress through H2 this year. However, given developments since the last policy meeting, we expect a cautious stance around near term rate cuts (i.e. in the next few months).
- The balance of risks points more towards easing at the end of the second half rather than the beginning.
- Full preview:
125 words