Bank of Korea Unease Focuses on Low Inflation: Chart of the Day
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Falling expectations for price gains in South Korea are raising concern at the central bank and point to more interest-rate cuts to combat low inflation, according to Samsung Securities Co. and Nomura Holdings Inc.
The CHART OF THE DAY shows the breakeven rate in the bond market -- an indication of where traders see future price levels -- tumbled to a record low 0.98 percent in November. The Bank of Korea’s own survey of household inflation expectations is also at an all-time low of 2.7 percent.