South Korea: BoK likely to hold base rate – Standard Chartered

South Korea will announce January industrial production (IP) data on 28 February. Meanwhile, the Bank of Korea (BoK) will hold a meeting on 27 February. Economists at Standard Chartered Bank predict the result of these events. USD/KRW trades at 1209.20.

Key quotes

“We expect the Bank of Korea (BoK) to keep the policy rate unchanged at its 27 February meeting.” 

“We think the BoK will wait for more data to gauge the impact of the coronavirus.” 

“IP likely fell 2.1% m/m and 1.6% y/y, after having risen 3.5% m/m and 4.2% y/y in December, due to fewer working days than January last year (Lunar New Year was in January this year versus in February last year).”