Bank of Korea: On the sidelines now - ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) offer their quick reaction to the Bank of Korea (BOK) “no rate change” decision announced earlier on Friday at 0100 GMT.

Key Quotes:

“While the decision to hold the policy rate was not unanimous, only one dissenter voted for a rate cut today, as opposed to two during the BoK’s rate hold in August. This suggests waning appetite for further easing, in our view. 

The BoK also lowered its growth and inflation forecasts today, but stated that the October rate cut was a pre-emptive one.

While the central bank did not close the door to further easing, we think it is likely to stay on the sidelines through 2020 unless the growth outlook takes another turn for the worse.”