South Korea's central bank may sit tight this week
Internet reports that the Bank of Korea may keep interest rates unchanged for the second consecutive time at its policy meeting on Thursday. A Wall Street Journal survey of 27 economists showed that 20 economists do not expect to adjust interest rates, while the remaining seven expect to cut interest rates. Goldman Sachs economists led by Gohoon Kwon said in a report that a moderate stance would give the Bank of Korea room to monitor household debt trends, assess the effectiveness of continued fiscal stimulus, and track the Fed's policy stance. Goldman Sachs predicts that Bank of Korea will cut interest rates in October. Most economists expect the Bank of Korea to slightly raise its 2025 GDP and inflation forecasts, citing stronger-than-expected second-quarter economic growth data.
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