Policymakers in Korea finally seem to be coming around to our view that rate cuts are needed to support the struggling economy after BoK Governor hinted that the central bank “must take appropriate measures to accommodate changes in economic conditions.” We are maintaining our view that the central bank will cut interest rates at its meeting in July.
Tourism arrivals to Sri Lanka were down by 70% y/y in June. A slump in the sector, which accounts for around 10% of GDP, is likely to weigh heavily on the economy over the coming months. We are sticking with our below-consensus forecast that the economy will grow by just 1.0% this year.
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