Financial institution of Korea unexpectedly cuts its base price by 25bp

The Financial institution of Korea was extensively anticipated to leaves the speed unchanged. Nope, cuts by 25bp to three%.

Forecasts from the Financial institution:

• 2024 GDP progress at 2.2% (vs 2.four% seen in Aug)
• 2024 inflation at
  2.three%
• 2025 GDP progress at
  1.9% (vs 2.1% seen in Aug)
• 2025 inflation at
  1.9%
• 2026 inflation at
  1.9%
• 2026 financial progress
  at 1.eight%

The Financial institution minimize final month additionally. the Financial institution cited proof of stabilising inflation for that call. This time round it seems the Financial institution has minimize resulting from slipping expectations for progress.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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