Tariff deal may lead BOK to keep rate steady through year-end

Bank of Korea (BOK) is likely to hold its key rate unchanged next month, aided in part by the recent breakthrough in Korea-U.S. tariff negotiations and the U.S. Federal Reserve’s back-to-back rate cuts, market watchers said Friday. The rate differentials with the U.S. have narrowed, reducing fears of foreign capital outflow and a weaker Korean currency against the U.S. dollar. Aside from external conditions, the central bank is expected to focus more on the overheating property market, given the rise in Seoul apartment prices and consumer expectations of further price increases over the coming year. Also under consideration is the country’s better-than-expected July-September GDP of 1.2 percent, raising hopes that this year’s figure will come in at 1 percent or higher, better than the forecast of 0.9 percent made in August. BOK Governor Rhee Chang-yong repeatedly spoke against monetary easing over concerns it would fuel a rise in property values, reflecting longstanding concerns that the country’s growth potential is eroded by real estate investment, heavy borrowing- and debt serWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times