November 28, 2024 at 01:47AM
Bank of Korea cut benchmark interest rates for a second straight meeting in a surprise move:
Bank of Korea unexpectedly cuts its base rate by 25bp
first time since 2009 the central bank cut interest rates for two consecutive meetings
BoK also lowered its forecasts for economic growth and inflation
South Korean won, bond yields weakened. KOSPI caught a wee bid.
More from the BoK now:
The Bank of Korea will thoroughly assess the impact of the base rate cut on inflation, growth, and financial stability.
Consumption is expected to continue a moderate recovery.
Exports growth is likely to fall.
The Bank of Korea will assess trade-offs among policy variables in determining the pace of further cuts.
The pace of economic recovery will depend on consumption, the trade environment, and IT exports.
It is important to remain cautious concerning the potential for high exchange rate volatility.
The won-to-dollar FX rate has risen considerably.
Inflation has maintained a stabilization trend.
The future path of inflation will be affected by FX movements, oil prices, economic growth, and public utility cost adjustments.
This article was written by Eamonn Sheridan at www.forexlive.com.
