A note by Bank of America analysts said that with “easing trade headwinds,” the BOK is expected to revise its GDP growth projection to around 1.0% for 2025, up from 0.8% previously.
The analysts forecast that the BOK would be open to cutting its policy rates in the next three months, with a possible rate cut in October.
They also expected another cut in the first half of 2026 to keep rates stable at 2%.
Yeah, the printer is charging up everywhere in the world.
They also expected another cut in the first half of 2026 to keep rates stable at 2%.
Inflation in South Korea, however, seems supportive of a rate cut, coming at 2.1% in July and just above the BOK’s target of 2%.