Bank of Korea signals rate cut

Wed, 08/21/2024

by Ellie LeTu

Source: WSJ

• Steady interest rates with slow growth expectation

  • The Bank of Korea maintains its 15-year high rate of 3.5%.

  • GDP growth and inflation are expected to be lower than previous forecasts.

• Possible rate cut

  • Analysts predict a possible rate cut starting in October.

  • Recent inflation spike is attributed to temporary factors like high food prices due to bad weather and increased oil costs from the Middle East tensions.

  • If the Fed cuts rates in September, the BoK might follow suit.