Korea’s Biggest Fund Manager Sees One More BOK Rate Cut: Economy
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South Korea’s central bank is likely to cut borrowing costs for the second time this year to help revive the economy, according to Samsung Asset Management Co.
The country’s biggest fund manager sees scope for the Bank of Korea to reduce its benchmark interest rate to 2 percent, most probably in October or November, after lowering it to 2.25 percent from 2.50 percent on Aug. 14, said Lee Do Yoon, its chief investment officer for fixed income. Bank of America Merrill Lynch is the only forecaster among 26 surveyed by Bloomberg predicting another cut in 2014, while the remainder said they expect no change.