Bank of Korea to leave rates at 1.75%

BoK is expected to leave rates at 1.75% on Thursday, but there is a small minority (2 out of 10) expecting a 25bps rate cut. 

With growth and inflation subdued, BoK remains under pressure and the door remains open for further monetary easing this year. 

Consensus expects only 10bps of cuts this year, with rate hikes in early 2016. With the negative output gap continuing for longer than had been anticipated, those expectations seem too optimistic.