BOK Likely to Downgrade its Estimates

The Bank of Korea (BOK) may cut its growth and inflation forecasts at Thursday’s policy meeting, but it’s likely to hold the line against mounting pressure for more interest rate cuts, analysts said.

“Undoubtedly, data in the first three months [of the year] do not bode well for growth,” ANZ analysts said in a note last week. “The central bank will very likely downgrade its [annual growth] estimates.”

South Korea’s economy expanded 0.3 percent on month in 2014’s fourth quarter, revised figures released in March showed, down from an initial reading of 0.4 percent and marking the slowest pace of growth since the first quarter of 2009, during the Global Financial Crisis.