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MNI BOK WATCH: Board To Hold At 3.5%, Rate Cut Delayed To Q4

(MNI) Tokyo
(MNI) TOKYO

Sticky inflation and an uncertain U.S. Federal Reserve will stay the BOK board's hand when it meets Thursday.

The Bank of Korea board will consider holding its policy rate unchanged at 3.50% at Thursday’s meeting as it awaits more evidence inflation is slowing toward its 2% target, observers told MNI.

The Bank will also likely delay the timing of any potential rate cut to the fourth quarter from Q3 as headline inflation remains far above target.

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The Bank of Korea board will consider holding its policy rate unchanged at 3.50% at Thursday’s meeting as it awaits more evidence inflation is slowing toward its 2% target, observers told MNI.

The Bank will also likely delay the timing of any potential rate cut to the fourth quarter from Q3 as headline inflation remains far above target.

Keep reading...Show less