Economists are now divided over whether South Korea’s central bank will move to ease monetary policy this week after President Park Geun-hye on Monday surprised markets during her annual address to the nation by hinting of further rate cuts.
During the televised speech, Park pledged to “ensure that macroeconomic policy organizations collaborate to come up with timely responses,” including interest rate cuts.
The comments sent South Korean bonds rallying on Monday, with the 1-year Treasury bond yield hitting a record closing low of 1.981 percent, as the consensus going into this week was for no change in monetary policy.
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