Seoul, Nov 24 The South Korean central bank is widely expected to hold its policy rate steady this week to ensure financial stability amid a weakening currency and an unsettled property market, a poll showed on Monday.
According to a survey conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency, all 18 local analysts and experts polled predicted that the Bank of Korea (BOK) will keep its base rate unchanged at 2.5 percent at its rate-setting meeting scheduled for Thursday, reports Yonhap news agency.
A separate survey by Yonhap News Agency of six additional experts also found unanimous expectations for a rate freeze this month.
"Given that apartment prices in Seoul remain strong and the currency continues to weaken, it would be better for the BOK to keep the base rate unchanged," said Park Jung-woo, an economist at Nomura Securities.
The BOK's Monetary Policy Board held its key rate steady for three consecutive meetings through October, though it has emphasised the need to support the economic recovery through monetary easing. The central bank has been in an easing cycle, having last cut the key rate at its May meeting.
The Korean won has weakened markedly against the U.S. dollar amid heavy foreign stock selling and broad dollar strength. The currency closed at 1,475.6 won per dollar Friday, its weakest level since April.
"As the central bank is widely expected to revise up its growth forecasts for this year and next year, it is likely to focus on financial stability," said Choi Ji-uk, an economist at Korea Investment & Securities.
The BOK previously forecast economic growth of 0.9 percent for 2025 and 1.6 percent for next year, with its revised outlook set to be released Thursday.
Regarding the prospects for future rate cuts, nine of the 18 respondents in the Yonhap Infomax survey expected a 25-basis-point reduction within the next three months.
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