This year's first interest rate decision...Economy vs. Exchange Rate, What's the Bank of Korea's choice?

The Bank of Korea will hold its first Monetary Policy Committee meeting tomorrow (16th) to decide the base rate.

Interest rates are currently 3% per annum due to two consecutive cuts last year (October and November).

Considering the recession alone, there is a possibility of three consecutive cuts.

This is because the growth outlook is getting darker as the emergency martial law situation overlaps amid the policy uncertainty that the Trump administration will pursue ahead of its launch.

However, the still high won-dollar exchange rate is a variable.

This is because the outlook for U.S. interest rates is rising amid continued political instability, which could encourage the won to fall.

In response, the Bank of Korea is expected to agonize until the last minute over a rate cut to stimulate the economy and a freeze weighing on stabilizing the exchange rate.