Quotes from Barclays Capital:
-We expect the Bank of Korea's policy emphasis to continue to have a dovish bias in H1 2015 and we forecast two 25bp hikes in Q3 and Q4 15.
-The tussle between the positive growth drivers (a resurgent US, lower oil) and the negatives (weaker China and Europe, fragile domestic confidence) will continue into Q1 15 with no clear winner.
-While the BoK revised lower its growth projection for 2015 to 3.8% (Barclays: 4.0%), we believe the conditions for further monetary accommodation would be a more marked deterioration in Q4 activity and confidence indicators. This is possible, but not our base case.
The material has been provided by InstaForex Company – www.instaforex.com