Central Banks
Economists See Earlier Rate Cut by Bank of Korea as Risks Rise
- Bank likely to bring rate from 3.5% to 3.25% in fourth quarter
- Plunging exports, worsening property market among risks
Customers walk through Jeonju New Joongang Market in Jeonju, North Jeolla Province, South Korea.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
The Bank of Korea will cut its benchmark interest rate earlier than previously expected, a Bloomberg survey shows, reflecting growing concerns over the outlook for economic growth.
The seven-day repurchase rate, currently at 3.5%, will probably be lowered to 3.25% during the last three months of this year, according to the latest median estimates by private economists. That’s one quarter earlier than last month’s survey.