Bank of Korea after its rate cut earlier:
- Will determine timing and pace of any further base rate cuts.
- Uncertainties to Korea growth outlook high.
- Will closely monitor domestic political situation.
- Exports growth to slow.
- Will closely monitor changes in economic policies at home and abroad.
- Will closely monitor effects of the base rate cuts.
- Domestic economic growth is projected to remain low for some time.
- Necessary to remain cautious about possibility of rebound in household debt.
- U.S. tariff policies, Fed policies, and stimulus measures by the Korean government are some of the uncertainties for the economy.
- Necessary to remain cautious about high FX volatility.
- Inflation is expected to remain stable at around 2%, affected by subdued demand pressure.
This article was written by Eamonn Sheridan at www.forexlive.com.
