Foreign banks say BOK likely to cut rate in Q4

[THE INVESTOR] Foreign Investment banks project that the Bank of Korea will lower the benchmark rate in the final quarter of the year, the Korea Center for International Finance said on Aug. 12.

The KCIF’s analysis of foreign investment banks’ projections showed they expect that slowing international trade may force BOK to lower the rate it in October. The banks also projected that the ongoing corporate restructuring will begin to take its toll on the economy later in the year. 

BOK govenor Lee Ju-yeol. The Investor

BNP Paribas and others cited slowing exports and investments in projecting that the central bank will lower the rate and its economic growth forecast in October.

The KCIF said that others including HSBC project that the rate will be cut during the final quarter of the year, and again in the first half of 2017.

By Choi He-suk (cheesuk@heraldcorp.com)