South Korea’s central bank is likely to maintain its benchmark interest rate at its current 3.5% as core inflation seems sticky, Oxford Economics told CNBC.
“I believe that the authorities think that the current settings will be able achieve the slowdown in the inflation that they’re aiming for,” said Sung Eun Jung of Oxford Economics.
She added that rate cuts “seem premature,” for the central bank, while pointing to weakened domestic demand adding to bringing down inflation.
Oxford Economics is expecting the central bank to cut its benchmark interest rate by the first quarter of next year, she said.
South Korea’s inflation stood at 4.2% compared to a year ago in its latest economic data release.
This article was originally published by CNBC.
