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Bank of Korea cuts rates, further cuts likely soon

The Bank of Korea (BoK) cut its policy rate to 3% today. It was a surprise that the move came at this meeting, but we have long held the view that rates would need to be cut this year to support the economy. Indeed, with inflation subdued and conditions in Europe likely to get worse before they get better, we think that the BoK will cut again before the end of the year.

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