According to Jinshi Data, ING analyst Min Joo Kang said that the Bank of Korea cut interest rates again, showing its priority for economic growth. She pointed out that two consecutive interest rate cuts are unusual in non-crisis periods.
Kang believes the move, which came ahead of intensifying global economic headwinds, shows the Bank of Korea prioritizes economic growth over short-term financial market stability. ING expects policy divergence to persist.
South Korea's central bank governor, Rhee Chang-yong, expressed confidence in tools to mitigate foreign exchange volatility, citing a swap agreement with the National Pension Fund of Korea and large foreign exchange reserves.