South Korea: BoK cut to 0.75% – TDS

The Bank of Korea (BoK) has cut its policy rate despite being reluctant so far to ease due to concerns about increased household debt, analysts at TD Securities apprise. USD/KRW trades at 1226.80.

Key quotes

“BoK cut its policy rate by 50bp to 0.75% following an emergency meeting, maintaining an accommodative policy stance.” 

“BoK justified its decision by stating that they need to reduce the virus impact on growth and inflation.” 

“While further rate cuts may not happen quickly, expect more stimulus measures from the government.”