The Bank of South Korea has announced its monetary policy and has highlighted key points:
“Local economy's growth remains low.
Uncertainties to growth increased.
Inflation's downside risks increased.
Statement drops reference to Japan export curbs as key risk.
Inflation to drop considerably over next few months due to base effect” .
The Bank of South Korea left interest rates unchanged at 1.50%. The USD / KRW is therefore expected to fall below $ 1207 in the near future.
However , A Reuters poll of many economists expects the Bank of Korea to drop interest rates below 1.25% on Oct. 17.