Korea industrial production sluggish at 0.3%

This worse performance is compared to the 1.6% production in June.

According to BBVA Research, Korea’s industrial production slowed to 0.3% y/y in July (consensus: 0.7% y/y) from 1.6% y/y the prior month, as the economy remains under pressure from the weak global environment. Korea will announce August exports tomorrow (the first August outturn in the region). We think there is an increasing likelihood authorities will decide to cut interest rates again at the BOK’s next policy meeting on September 13 after a surprise cut of 25bps in July brought the policy rate to its current 3.0%.

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