Seoul:More than nine in ten bond experts in South Korea anticipate that the central bank will maintain its key interest rate for October, a recent poll revealed on Tuesday.
According to Yonhap News Agency, a survey conducted by the Korea Financial Investment Association indicated that 93 percent of bond market managers expect the Bank of Korea (BOK) to keep its policy rate unchanged at the upcoming rate-setting meeting scheduled for Thursday.
The majority of bond experts believe that the BOK will likely take time to evaluate market conditions after consecutively increasing the benchmark rate in July and August. During a parliamentary audit last week, BOK Governor Shin Hyun-song hinted at a potential pause, stating, "When we conduct monetary policy, we always assess how much time economic agents need to adapt and evaluate their ability to do so."
Furthermore, the Korea Financial Investment Association reported that its bond market survey index (BMSI) rose to 99.1 for November, compared to 89.7 for October. A BMSI reading below 100 suggests that more experts foresee deteriorating conditions in the bond market moving forward.