Economics
Bond Traders Bet Bank of Korea Will Cut Again
- Governor Lee says the central bank still has room to act
- Three-year yields may fall as low as 1.25%: Hana Financial
This article is for subscribers only.
South Korean bond markets are suggesting the central bank will follow up Thursday’s unexpected interest-rate cut with at least one more amid slowing economic growth and a simmering trade dispute with Japan.
The nation’s three-year yield fell to 1.35% after the decision, putting it well below the new benchmark rate of 1.5%. Bank of Korea lowered its seven-day repurchase rate from 1.75%, while trimming its forecasts for economic growth and inflation.