Currency Wars Re-Escalate As Bank Of Korea Shocks Market With Rate Cut
By Tyler Durden
With the 655th rate-cut globally since Lehman, the Bank of Korea stunned the market tonight and cut rates 25bps to 1.25% (a record low). Only 1 of 18 economists expected a rate cut as it appears record highs in US equities signal nothing about the underlying turmoil in the world’s economy. After 6 straight days stronger (against the USD), the Won is sliding back above 1160 as it seems the currency wars are reigniting in AsiaPac…
The 25bps cut, the first reduction since June 2015, shocked the market as only one BOK board member said at the May decision (according to the minutes) that there was a need to cut rates in near term.. which makes us wonder just what changd so quickly.
Source: Currency Wars Re-Escalate As Bank Of Korea Shocks Market With Rate Cut
