South Korea: BoK expected to keep rates unchanged this month – UOB

Lee Sue Ann, Economist at UOB Group, believes the Korean central bank (BoK) would keep the policy rate unchanged at its meeting on August 20.

Key Quotes

“The BoK kept its benchmark Base Rate unchanged at 0.50% in July. We are maintaining our call for the BoK to keep the current record low rate unchanged for the rest of 2020.”

“There will be increasing emphasis on non-interest rate tools as well as greater utilization of fiscal policy. The BoK has signaled that it may downgrade its 2020 growth forecast of -0.2% at the upcoming meeting.”