Standard Chartered Bank: Easing moves by major central banks to add pressure on BOK

Quotes from Standard Chartered Bank

• The trend of monetary easing by major central banks will likely add to the pressure on the BoK. The year started with further QE by the European Central Bank (ECB), followed by a series of easing decisions by central banks in Canada, Singapore and Indonesia.
  
  
  
• China is South Korea's largest trading partner; China's latest rate cut, with likely further easing, therefore raises the most concern. Japan, a key trading competitor, may expand its QQE programme as early as April, adding to the pressure on South Korea's export price competitiveness.
  
   
• We think that Korea's weakening export data and unfavourable export environment, exacerbated by the slowdown in China and a weak Japanese yen (JPY), make the BoK more sensitive to easing moves by China and Japan. We expect these external pressures to prompt discussions of a rate cut at the MPC's March meeting.