RBNZ Cuts Interest Rates Again as Inflation Cools and Recovery Remains Fragile 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
BOJ Governor Ueda Meets Key Ministers as Markets Eye Policy Shifts Under New Leadership 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
The Bank of Korea (BOK) is widely expected to cut its key interest rate by 25 basis points to 2.75% on Tuesday to support South Korea’s sluggish economy. A Reuters poll of 36 economists found that all but one anticipate the rate cut, with additional easing likely later this year.
After holding rates steady last month, the BOK signaled caution due to political uncertainties and currency volatility. However, with the Korean won rebounding 2.5% against the U.S. dollar this year and inflation at 2.2%, close to the central bank’s 2% target, policymakers now have room to stimulate growth.
South Korea’s economy, heavily reliant on semiconductor exports, faces mounting risks from weaker consumer sentiment, slowing exports, and geopolitical uncertainties. U.S. trade policies, particularly potential tariff actions, could further impact economic performance.
A strong majority of economists—32 out of 35—predict another 25-basis-point cut to 2.50% in Q2, followed by a possible reduction to 2.25% in Q3. Despite expectations that the U.S. Federal Reserve may cut rates only once in June, analysts believe the BOK has greater flexibility to ease monetary policy.
“The BOK is acknowledging the economy’s widening negative output gap,” said Stephen Lee, chief economist at Meritz Securities. “As long as FX volatility remains controlled, further rate cuts are likely.”
With growth expected to slow beyond the previously estimated 1.9% this year, the BOK is under pressure to act. Analysts expect rates to remain at 2.25% in Q4, aligning with earlier forecasts.
Market watchers will closely monitor the central bank’s policy stance as South Korea navigates economic headwinds.
