Korean rates kept on hold, but cut likely before year-end

The Bank of Korea (BoK) kept its main policy rate on hold at 2.5% today, as expected. Nevertheless, with inflation set to remain weak and economic growth likely to stay lacklustre, we have pencilled in a rate cut before the end of the year. By contrast, we believe the loosening cycle in most other countries in Emerging Asia has now come to an end.     

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