Quotes from Barclays Capital:
-South Korea's inflation edged down to 0.8% y/y in December (November: 1.0%; October: 1.2%), below expectations (Barclays and consensus: 0.9%). Today's report might support expectations of further monetary easing, but this is not our forecast.
-On the activity side, we expect IP to remain subdued in December, but would look for exports to pick up in the coming months, as producers run down excess inventories of autos and consumer electronics.
-We expect the Bank of Korea's policy emphasis to continue to have a dovish bias in H1 15, and we forecast two 25bp rate hikes, one in Q3 and another in Q4 15.
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