Bank of Korea seen holding charges this week, however cuts anticipated quickly

The Bank of Korea is expected to keep its benchmark interest rate steady at 2.75% at its April 17 meeting, according to a Reuters poll of economists.

• Of the 37 surveyed, 24 anticipate no change, while 13 foresee a 25 basis point cut.

This would mark the second pause since the central bank began easing rates in October, with policymakers now assessing the economic fallout from U.S. President Trump’s tariff actions and recent currency market volatility. Exports make up nearly half of South Korea’s GDP, leaving the economy especially sensitive to trade disruptions.

Despite the likely hold, most economists still expect the BOK to resume cutting rates from May, with 27 of 30 predicting a reduction to 2.50% next month and further easing to 2.25% by the end of Q3 — unchanged from the February poll.

Morgan Stanley:

• a “dovish hold” is expected this week as the BOK navigates tariff uncertainty and sharp FX swings
• downward revision to the bank’s growth outlook in May is now likely.