South Korea: BoK delivers an emergency rate cut – Standard Chartered

The Bank of Korea (BoK) delivers an emergency rate cut of 50bps due to coronavirus impact, economists at Standard Chartered Bank brief. USD/KRW is trading at 1228.95.

Key quotes

“The BoK cut its base rate by 50bps to 0.75%, following the Fed’s 100bps cut and dovish moves by other central banks.”

“We do not see further rate cuts this year; however, the BoK may be open to further cuts depending on the coronavirus impact.”

“Concerns about the worsening global growth outlook and weak risk sentiment have added to our long-held bearish view on the KRW.” 

“We are looking for opportunities to express our bearish KRW view versus the USD or other currencies.”