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8 Jan 2015
BOK might cut rates by 50bps through April – Nomura
FXStreet (Barcelona) - The Research Team at Nomura, predicts the BOK to cut rates by 25bps to 1.75% in January and further to 1.50% in April to curb deflation risks arising out of soft commodity prices.
Key Quotes
“In Korea, we expect KRW to remain under pressure, given the concerns about further JPY depreciation and rising deflation risks. Our G10 FX strategy team sees continued USD strength in 2015.”
“The broad USD gains, especially against JPY, could elicit concerns among South Korean authorities over its negative impact on the local economy.”
“Another key risk stems from softening global commodity prices, which could prompt the Bank of Korea (BOK) to ease policy further to curb deflation risks.”
“Indeed, Nomura economics maintains its out-of-consensus call for the BOK to cut policy rates by 25bp to 1.75% in January and further to 1.50% in April.”
Key Quotes
“In Korea, we expect KRW to remain under pressure, given the concerns about further JPY depreciation and rising deflation risks. Our G10 FX strategy team sees continued USD strength in 2015.”
“The broad USD gains, especially against JPY, could elicit concerns among South Korean authorities over its negative impact on the local economy.”
“Another key risk stems from softening global commodity prices, which could prompt the Bank of Korea (BOK) to ease policy further to curb deflation risks.”
“Indeed, Nomura economics maintains its out-of-consensus call for the BOK to cut policy rates by 25bp to 1.75% in January and further to 1.50% in April.”