The Bank of Korea was widely expected to leaves the rate unchanged. Nope, cuts by 25bp to 3%.
Forecasts from the Bank:
- 2024 GDP growth at 2.2% (vs 2.4% seen in Aug)
- 2024 inflation at 2.3%
- 2025 GDP growth at 1.9% (vs 2.1% seen in Aug)
- 2025 inflation at 1.9%
- 2026 inflation at 1.9%
- 2026 economic growth at 1.8%
The Bank cut last month also. the Bank cited evidence of stabilising inflation for that decision. This time around it appears the Bank has cut due to slipping expectations for growth.
