SEOUL: South Korea's central bank is likely to keep rates steady on Thursday as it monitors low local inflation, a slowdown in China and geopolitical tensions around Ukraine.
All 31 analysts polled by Reuters forecast the Bank of Korea will keep its base rate at 2.50 percent for an 11th straight month at its monetary policy meeting on April 10, under the new leadership of Governor Lee Ju-yeol.
A majority of respondents said they could not see a drastic change of policy from Lee, and expected the Bank of Korea to hold rates and take cues from key policy changes in advanced economies.
The respondents also said April's rate decision would fail to surprise markets and investors were likely to focus on Lee's press conference shortly after the rate announcement for clues on future policy.
Twenty-four of the 31 analysts polled gave a clear view on the central bank's next policy move. Of those, 20 said the Bank of Korea's next rate change will be an increase, with timing estimates varying from the third quarter of this year to the final quarter of 2015.
Comments
Comments are closed.