Bank of Korea to keep interest rates steady despite worsening coronavirus fallout: Reuters poll

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Bank of Korea to keep interest rates steady despite worsening coronavirus fallout: Reuters poll
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South Korea's central bank will likely keep interest rates on hold on Thursday as the central bank weighs concerns about rising household debt and property prices with the need to support a coronavirus-hit economy.

SEOUL - South Korea’s central bank will likely keep interest rates on hold on Thursday as the central bank weighs concerns about rising household debt and property prices with the need to support a coronavirus-hit economy.

Thirteen of 15 analysts who provided forecasts for end-2021 saw the BOK holding rates throughout this year and next. One forecast a rate cut in 2021 and the other a rate hike. “But the bank will need to see whether the resurgence in COVID-19 leads to further deterioration of economic indicators, which makes any policy action less urgent.”

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