2025/03/02 - BoK cuts rates 25bp to 2.75%

BoK cuts rates to bolster growth, lowers GDP forecast

기사링크: https://www.reuters.com/markets/rates-bonds/bank-korea-cuts-rates-275-expected-2025-02-25/      

- Lowered GDP growth forecast of 2025, from 1.9% to 1.5%

- Headline and Core Inflation rate forecast is 1.9% and 1.8%

 

< Reviewing the Press Conference >

- FX and internal political risk has declined. BoK internally concluded that volatility of USD/KRW has eased. 

- Purpose of this rate cut was to boost domestic economy that has been deterred beacuse of martial law last December. 

- More rate cuts are needed and the bank is gonna consider the speed of the decisions based on future data.

- 2 out of 6 members agreed on lowering forward guidance rate. 

- The 1.5% forecast is number derived from considering today's rate cut. If we want more growth we need help of fiscal policy

- Supplementary budget worth around 14billion USD will help us escalate growth rate for about 0.2%p. 

 

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USD/KRW exchange rate: 1,461.28

USD/JPY exchange rate: 150.60엔

USD/CNY exchange rate: 7.2828위안

CNY/KRW exchange rate: 200.59원

DXY: 107.61

 

US Treasury 30Y yield: 4.484%

열흘 사이에 30bp 가까이 내렸다..이유가 뭘까

US Treasury 10Y yield: 4.202%

US Treasury 2Y yield: 3.985%

 

KTB 30Y yield: 2.540%

KTB 10Y yield: 2.724%

KTB 2Y yield: 2.657%

 

Whanki Kim. Riding Bicycle in Songdo