Bank of Korea defies expectations of 0.25% rate cut

Early on Thursday, Bank of Korea conveys its monetary policy decision for February month. The South Korean central bank surprised global markets by defying the calls of a 0.25% rate cut while holding the benchmark rate unchanged at 1.0%.

“Sixteen of 26 analysts surveyed by Reuters predicted the Bank of Korea’s (BOK) seven-member board would cut the policy rate to 1.00% at its February meeting in a pre-emptive move,” said Reuters before the meeting.

Following the decision, USD/KRW rises to the intra-day high of 1,216.42 as news concerning coronavirus (COVID-19) crossed wires.

Among them, Yonhap’s confirmation that the US and South Korea have postponed the joint military drills and an addition to 334 COVID-19 cases to total 1,595 grabbed major attention.

That said, the market's risk-tone remains heavy with the S&P 500 Futures declining 0.86% to 3,084 and the US 10-year treasury yields testing 1.32% mark.