BOK to announce key rate tomorrow...Interest in the Downward Growth Rate

The Bank of Korea will hold its last Monetary Policy Committee meeting tomorrow (28th) to decide the benchmark interest rate.

The interest rate was cut once last month and is currently 3.25% per annum.

Considering only the domestic situation, there is a possibility of a reduction this month.

Consumer price growth stabilizes to 1% range for second straight month,
This is because
household debt and soaring housing prices have also declined.

In particular, the slowdown in export growth amid a slow recovery in domestic demand and the darkening economic outlook are also bolstering the cut.

However, instability in the won-dollar exchange rate, which goes around 1,400 won, has emerged as a big variable.

In addition, the U.S. Federal Reserve's suggestion of a rate cut is also burdensome to the Bank of Korea.

Although the outlook for a rate freeze is dominant due to these external variables, there may be room for a cut if the growth forecast for next year falls below the 1% range.

There is no disagreement that the economic growth rate makes the forecast announced in August.

The previous forecast, which was 2.4% this year and 2.1% next year, is expected to be lowered to around 2.2% and 2%, respectively.