Asia Weekly: More policy support coming in Korea

More policy support in Korea looks to be on its way soon. The minutes from the Bank of Korea’s May meeting, point to more rate cuts over the coming months. Meanwhile, the new government has announced a US$14.7bn supplementary budget (0.85% of GDP), mostly in the form of spending vouchers. Elsewhere, the central bank in Pakistan left interest rates unchanged at its scheduled meeting this week, but we still see room for more policy easing before the end of the year. Finally, while Sri Lanka’s economy recorded another quarter of solid growth in Q1, the level of GDP remains about 15% below pre-pandemic levels.