Further BoK rate cut in early 2016?

If Korean GDP growth continues to disappoint in Q3 and Q4 2015, and if the BoK has to revise down its GDP growth again in January 2016, it can no longer be ascribed to temporary shocks from MERS concerns. 

Further BoK rate cuts can be considered as an alternative scenario. In that event, the additional rate cut is more likely to take place in early 2016 than in H2 2015. 

Something has got to be wrong, and the BoK may have to address the slowdown in GDP growth by further easing actions. Even household debt management measures may be mitigated if they really cause a significant slowdown in housing markets, credit expansion or domestic demand. 

"Of course, there might be no changes in the BoK policy rate throughout 2016, on the assumption of a sustained credit expansion that should ultimately lead to a visible recovery in domestic demand", says Societe Generale.