Bank of Korea maintains the status-quo in May amid US-China trade war

At its monetary policy meeting held earlier today, the South Korean central bank, Bank of Korea (BOK), kept the benchmark interest rate unchanged for the fourth straight meeting despite ongoing US-China trade war.

The BOK’s Monetary Policy Board voted to hold the benchmark interest rate at 1.75%, as expected by 20 of 21 economists forecast in a Reuters poll.

USD/KRW remains offered near 1,192 following the BOK non-event.

Key Headlines:

Exports to gradually recover.

Consumption will continue to grow.

Trade risks has risen, adding uncertainties to Korea.

Headline inflation to run at low.

To mid-1% level from 2h this year.

Downside risks to inflation projection earlier increased.

Meanwhile, the country’s Finance Minister noted that South Korea may post current account deficit in April, mainly due to stock dividend payments.