(Bloomberg) — The Bank of Korea is expected to hold its policy rate at a record low on Thursday while slashing growth projections as a resurgence of the coronavirus throws recovery prospects into disarray.
All 22 analysts surveyed by Bloomberg expect the seven-day repurchase rate to remain at 0.5%, a level Governor Lee Ju-yeol has said is close to the effective lower bound. Lee this week told lawmakers the bank may cut its economic projections for 2020 by a considerable margin after forecasting a 0.2% contraction in May.
With little question among analysts that the BOK will stand pat on rates, the focus shifts to how significantly the bank cuts its view of this year’s growth, said economist Park Jeong-woo at Nomura Holdings Inc.
“Anything below -1% and people will take that to mean