Analysts Almost Evenly Split over Whether Bank of Korea Hikes Rates or Stands Pat
Dow Jones
Yesterday
0139 GMT - The Bank of Korea's policy decision Thursday has analysts nearly evenly split over whether the BOK will hike rates or hold them steady. Of 31 analysts polled by the WSJ, 16 forecast another hike following the bank's first hike in three years in July, while 15 expect the BOK to stand pat before hiking in 4Q. The BOK is widely expected to raise its growth forecast this year, while inflation stays above its 2% target. Morgan Stanley economist Kathleen Oh says the "favorable macro backdrop" justifies an August rate hike while HSBC economist Jin Choi thinks the BOK is in no rush to hike as consumption appears to be softening. "We believe the Monetary Policy Board is split between a hold and a pre-emptive hike," says Barclays economist Bum Ki Son.
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