Falling inflation raises rate cut possibility by the BOK – Nomura

FXStreet (Barcelona) - According to the Research Analysts at Nomura, lower Asia inflation in coming months raises the risk of further shifts in local monetary policies, and see the probability of additional rate cuts by the BOK.

Key Quotes

“Nomura Economics continues to see additional rate cuts from the BOK, with downside inflation and growth risks, and we expect authorities to maintain a preference for weaker KRW, as reflected by its USD purchases. Although local rates/FX policy and broad USD gains could lead to KRW depreciation, Korea’s large current account surplus is likely to continue to provide consistent support to KRW, especially during periods of limited movements of broad USD.”