BoK expected to cut the policy rate further to 1.50% from 1.75%

The Bank of Korea (BoK) will to hold its Monetary Policy Committee (MPC) meeting on 11 June. It is expected to cut the policy rate further to 1.50% from 1.75%. 

It is believed that the recent deterioration in economic data and weak sentiment following the outbreak of the Middle East Respiratory Syndrome (MERS) virus represent strong reasons for a cut. Recent comments by local policy makers have turned more dovish. 

"We think the BoK will make a pre-emptive policy move before downside risks weigh on growth further. We also believe the central bank will act before the Fed commences its rate-hiking cycle, as risks of capital outflow are likely to increase ",says Standard Chartered.