🇰🇷 The Bank of Korea may cut interest rates to cope with political instability. Where will market expectations go? 📉

The Bank of Korea is expected to cut interest rates by 25 basis points for the third time in a row at its meeting on January 16, lowering the policy rate to 2.75%. The decision was mainly influenced by the political turmoil and slowing domestic demand caused by the impeachment of President Yoon Seok-yeol. 💡

🔍 Economists' expectations

19 economists predict a 25 basis point rate cut to ease economic growth pressure and cope with political uncertainty. Seven economists believe that the Bank of Korea will maintain the status quo at the January meeting and may cut interest rates again in February.

Key factors: political instability and economic expectations ⚖️

Political turmoil and slowing economic growth in South Korea are the main reasons for the rate cut. Concerns about weakening domestic demand and a weaker won have put pressure on monetary policy adjustments. Market reaction: If the expected rate cut is realized, it may affect the trend of the Korean won and further stimulate domestic consumption.

🔮 Potential impact on the crypto market

The Bank of Korea's rate cut decision may bring short-term market volatility, but in the long run, the low interest rate environment may prompt more funds to flow into risky assets, including cryptocurrencies. As low interest rates make traditional assets less attractive, investors may be more inclined to turn funds to crypto assets such as Bitcoin as a tool to combat currency depreciation. 🪙

💬 Summary: Although the rate cut is a step to cope with the slowdown in the domestic economy, it may also bring greater market volatility and provide opportunities for cryptocurrency investors! Pay close attention to the impact of the weakening of the Korean won on the crypto market. Investors need to plan ahead and respond cautiously! 📊 #IQ #AI #FIRO #MBL #SC $STMX $SC $IQ