Central Banks
Bank of Korea’s Rhee Seeks to Curb Moves Based on Rate Cut Hopes
- BOK will keep policy restrictive while mulling cut timing
- Decision unanimous, but 2 board members open to near-term cut
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Bank of Korea Governor Rhee Chang-yong sought to rein in market moves based on assumptions of a near-term policy pivot as the board extended its record-long holding of interest rates.
“Market expectations for a cut are somewhat excessive,” Rhee said at a news briefing after the board unanimously decided Thursday to keep the seven-day repurchase rate unchanged at 3.5%, matching the forecast of all 22 economists surveyed by Bloomberg.