Why Bank of Korea is expected to hold rates steady at 2.5%

As GDP forecast is pegged to hit 0.8%.

According to DBS, the Bank of Korea is expected to hold rates steady at 2.50% when they meet tomorrow. Growth numbers in April/May are still on track to reach the central bank’s GDP forecast of 0.8% (QoQ sa) in 2Q.

Business sentiment has also improved in recent months since the government announced a supplementary budget in April and the BOK cut rates in May.

Here's more from DBS:

We don’t expect the central bank to revise its economic assessment at tomorrow’s meeting. It will be interesting to watch the central bank’s comments on the recent financial market volatility.

The worries over the Fed’s QE tapering have resulted in the rise in long-term KTB yields, depreciation of the KRW and drop in the KOSPI.

While a rapid rise in bond yields bodes ill for growth recovery, the broad KRW liquidity conditions have remained accommodative and short-term money market rates have stayed stable.

The downward correction in the KRW/JPY rate might in fact be welcomed by policymakers at this point.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia