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key rate-survey

99 pct of bond experts anticipate BOK to freeze key rate again: survey

SEOUL, Feb. 24 (Yonhap) -- Nearly all bond experts here believe the Bank of Korea (BOK) will keep South Korea's benchmark interest rate steady for a sixth consecutive time in its rate-setting meeting this week, a survey showed Tuesday.

According to a poll conducted by the Korea Financial Investment Association (KOFIA) on 100 fund managers and traders at 43 financial institutions, 99 of those polled said they expect the central bank to keep the country's base rate steady at 2.5 percent.

The BOK's monetary policy board is scheduled to hold its rate-setting meeting on Thursday.

KOFIA said a continued weakness of the local currency and growing expectations that the U.S. Federal Reserve would make another on-hold decision in its policy meeting next month strengthened the experts' outlook for a rate freeze.

The survey also showed that 16 percent of the respondents expect local bond yields to rise in March, while 34 percent predict drops.

The association also said its bond market survey index (BMSI) stood at 96.5 for next month, down from 96.8 for February.

A BMSI reading below 100 means more experts expect bond market conditions to worsen.

"Bond market sentiment for March deteriorated amid a continued bullish run in the local stock market, and inflationary concerns due to a rise in global oil prices," the association said.

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