Investigation: The Bank of Korea is expected to stand pat this week.
The Bank of Korea is likely to maintain interest rates unchanged for the second consecutive time in its policy meeting on Thursday. In a survey of 27 economists by The Wall Street Journal, 20 said they expected rates to stay the same, while the remaining 7 predicted a rate cut. Goldman Sachs economists Goohoon Kwon and others said in a report that by taking a moderate approach to keeping rates unchanged, the Bank of Korea would have room to monitor trends in household debt, assess the effects of ongoing fiscal stimulus, and track the policy stance of the Federal Reserve. Goldman Sachs expects the Bank of Korea to cut rates in October. Most economists expect the Bank of Korea to slightly raise its forecasts for domestic production and inflation in 2025, citing stronger-than-expected economic growth data in the second quarter.
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