69% of Bond Experts Expect Interest Rate Cut at May Monetary Policy Meeting

[Financial News] 69% of bond experts predict that the base interest rate will be cut at the Bank of Korea's Monetary Policy Committee meeting on May 29.
The Korea Financial Investment Association announced on the 27th that according to the 'June 2025 Bond Market Indicator', 69 out of 100 bond experts responded that the Bank of Korea would cut the base interest rate at the May Monetary Policy Committee meeting.
This is the result of a survey analyzing the responses of 100 people involved in bond holding and management from the 16th to the 21st. This response rate has increased compared to the 12% in last month's survey.
However, 31% of respondents said that the base interest rate would be frozen at the Monetary Policy Committee meeting.
The Korea Financial Investment Association stated, "Due to the stabilization of the won/dollar exchange rate and the intensifying downward pressure on the economy due to sluggish domestic demand, the expectation for a base interest rate cut at the May Monetary Policy Committee meeting has increased compared to the previous survey." The number of respondents expecting market interest rates to rise in June has increased compared to the previous month.
28% of respondents said interest rates would rise, a 12 percentage point increase from the previous month. On the other hand, 35% of respondents said interest rates would fall, a 12 percentage point decrease.
This is interpreted as a concern over the rise in long-term government bond yields in major countries such as the United States, Japan, and Europe, and the expansion of domestic government bond issuance.
The sentiment of the bond market regarding inflation has improved compared to the previous month. 16% of respondents said prices would fall, a 4 percentage point increase from the previous month. On the other hand, 5% of respondents predicted price increases, a 13 percentage point decrease over the same period.
Regarding the exchange rate, 53% of respondents said it would fall, a 9 percentage point increase from the previous month. The Korea Financial Investment Association explained, "This is due to the recent decline in the won/dollar exchange rate and the improvement in foreign exchange supply and demand conditions due to the continued current account surplus."



khj91@fnnews.com Kim Hyun-jung Reporter