BoK likely 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. Standard Chartered expects, BOK may cut the policy rate further to 1.50% from 1.75%. Analysts believe, 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. 

"The BoK will make a pre-emptive policy move before downside risks weigh on growth further, and 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.