Standard Chartered Bank: We expect a BoK rate cut in Q2-2015

Quotes from Standard Chartered Bank

• We now expect the Bank of Korea (BoK) to cut the policy rate in Q2-2015, versus ourprevious forecast of Q1. We think the Monetary Policy Committee (MPC) will keepthe rate on hold at its 12 March meeting. Policy makers have refrained from cuttingrates since end-2014. 
  
  
• MPC members have voted unanimously to keep the rate onhold twice in 2015, and their focus on structural reform argues against potentialpolicy moves. However, we expect a rate cut in Q2, as recent economic data showsa negative trend, and easing by major central banks and Korean Finance MinisterChoi's concerns about prolonged disinflation are adding pressure to cut the rate. 
  
  
• Weexpect a split vote on a hold decision next week and a rate cut as early as April