ANZ analysts note that the Bank of Korea (BoK) has maintained its policy rate at 1.75% today as the decision to hold was unanimous and widely expected.
“The BoK also lowered its growth and inflation forecasts for 2019, which came on the back of disappointing activity and inflation data in Q1. Nonetheless, the central bank maintains the view that growth will not deviate significantly from its potential level and the Governor has attributed the low inflation readings to low oil and agricultural prices as well as government policies.”
“He also reiterated in his press conference that rate cuts are not being considered. Therefore, we are sticking with our forecast for the BoK to stand pat throughout 2019.”