Latest news with #MeritzSecurities
Reuters
5 days ago
- Business
- Reuters
Bank of Korea to pause easing in July amid household debt surge: Reuters poll
BENGALURU, July 8 (Reuters) - The Bank of Korea will pause its easing cycle on Thursday but is expected to resume interest rate cuts next month to support economic growth in a country burdened by high household debt, a Reuters poll of economists suggested. Government data showed, opens new tab home-backed mortgage loans rose by 5.6 trillion won ($4.1 billion) in May, accelerating from a 4.8 trillion won increase in April. That uptick is likely to deter the central bank from delivering back-to-back rate cuts even as it remains on an overall easing path. "There is a need to be cautious about the possibility of housing market and household debt-related risks increasing again," central bank board monetary policy board member Kim Jong-hwa said on June 25. All 33 economists polled July 1–7 expected the BOK to hold its base rate (KROCRT=ECI), opens new tab at 2.50% on July 10. "A pause in July is not really a special thing. Financial stability and housing market concerns were always under consideration when the BOK was conducting monetary policy," Stephen Lee, chief economist at Meritz Securities, said. "The only thing ... that seems a little bit different this time is that home prices in Seoul have recently surged and that has caused mortgage loans to rise," he added. Even after 100 basis points of cuts since late last year, the minutes of the May meeting showed board members saying it was necessary to continue easing monetary policy to support economic growth. With the economy contracting 0.2% in the first three months of the year and inflation largely stable at around 2%, a significant majority of economists - 22 of 31 - expect the BOK to lower the policy rate by 25 basis points to 2.25% by the end of this quarter. However, views diverged on where rates will end the year. Just over half of economists, or 16 of 31, saw the policy rate at 2.25%, while 13 said rates would fall to 2.00% by end-2025. Two expected it to remain unchanged at 2.50%. "The combination of lackluster growth and contained price pressure will encourage further policy support," Jennifer Kusuma, senior rate strategist at ANZ, said. "We expect the BOK's policy messaging to keep the door open for further easing and continue to see scope for a further 25 bps rate cut this year, taking the policy rate to 2.25%." A slowing economy and the lack of progress on a trade deal with the United States are likely to weigh on the outlook. The poll showed economists reduced their 2025 growth forecast to 0.9% from 1.3% expected in April, aligning with the central bank's projection of 0.8%. Inflation was expected to average 2.0% this year and ease slightly to 1.9% in 2026. "The prolonged uncertainty will surely dampen the already weak domestic demand growth, companies will likely adopt wait-and-see mode before finalising their investment plans," Kelvin Lam, senior economist at Pantheon Macroeconomics, said. "If trade talks with the U.S. turn sour, then there will be a higher chance of rates going to 2.00% by end of this year." (Other stories from the July Reuters global economic poll) ($1 = 1,367.7 won)
CNA
5 days ago
- Business
- CNA
Bank of Korea to pause easing in July amid household debt surge: Reuters poll
BENGALURU :The Bank of Korea will pause its easing cycle on Thursday but is expected to resume interest rate cuts next month to support economic growth in a country burdened by high household debt, a Reuters poll of economists suggested. Government data showed home-backed mortgage loans rose by 5.6 trillion won ($4.1 billion) in May, accelerating from a 4.8 trillion won increase in April. That uptick is likely to deter the central bank from delivering back-to-back rate cuts even as it remains on an overall easing path. "There is a need to be cautious about the possibility of housing market and household debt-related risks increasing again," central bank board monetary policy board member Kim Jong-hwa said on June 25. All 33 economists polled July 1–7 expected the BOK to hold its base rate at 2.50 per cent on July 10. "A pause in July is not really a special thing. Financial stability and housing market concerns were always under consideration when the BOK was conducting monetary policy," Stephen Lee, chief economist at Meritz Securities, said. "The only thing ... that seems a little bit different this time is that home prices in Seoul have recently surged and that has caused mortgage loans to rise," he added. Even after 100 basis points of cuts since late last year, the minutes of the May meeting showed board members saying it was necessary to continue easing monetary policy to support economic growth. With the economy contracting 0.2 per cent in the first three months of the year and inflation largely stable at around 2 per cent, a significant majority of economists - 22 of 31 - expect the BOK to lower the policy rate by 25 basis points to 2.25 per cent by the end of this quarter. However, views diverged on where rates will end the year. Just over half of economists, or 16 of 31, saw the policy rate at 2.25 per cent, while 13 said rates would fall to 2.00 per cent by end-2025. Two expected it to remain unchanged at 2.50 per cent. "The combination of lackluster growth and contained price pressure will encourage further policy support," Jennifer Kusuma, senior rate strategist at ANZ, said. "We expect the BOK's policy messaging to keep the door open for further easing and continue to see scope for a further 25 bps rate cut this year, taking the policy rate to 2.25 per cent." A slowing economy and the lack of progress on a trade deal with the United States are likely to weigh on the outlook. The poll showed economists reduced their 2025 growth forecast to 0.9 per cent from 1.3 per cent expected in April, aligning with the central bank's projection of 0.8 per cent. Inflation was expected to average 2.0 per cent this year and ease slightly to 1.9 per cent in 2026. "The prolonged uncertainty will surely dampen the already weak domestic demand growth, companies will likely adopt wait-and-see mode before finalising their investment plans," Kelvin Lam, senior economist at Pantheon Macroeconomics, said. "If trade talks with the U.S. turn sour, then there will be a higher chance of rates going to 2.00 per cent by end of this year."
Miami Herald
25-06-2025
- Business
- Miami Herald
Korea's Meritz Securities partners with AWS for AI platform
June 25 (UPI) -- Meritz Securities, one of South Korea's leading brokerage houses, announced a partnership Tuesday with Amazon Web Services to introduce innovative services. Under the cooperation with AWS, the world's top cloud service provider, Meritz Securities plans to develop personalized financial platforms powered by artificial intelligence applications. Meritz Securities has channeled resources to strengthen its AI research capabilities and come up with futuristic financial platforms. Toward that end, the Seoul-based company founded a dedicated in-house organization, called the Inno Biz Center, early this year and attracted dozens of info-tech and financial experts. "This collaboration will serve as a turning point for us as we transform into a next-generation AI-driven financial corporation," said Meritz Securities Senior Vice President Lee Jang-wook, who leads the Inno Biz Center. An increasing number of South Korean brokerages take advantage of AI technologies. Late last month, for example, Mirae Asset Securities launched a new service, which uses AI to identify and deliver real-time insights into the causes of sharp stock price fluctuations in overseas markets. The service automatically scans U.S. stocks, which rose or fell by more than 2% during the previous trading session and identifies reasons by going through disclosures or key events. It then summarizes related global news and provides investors with concise explanations. In April, KB Securities unveiled "Stock GPT," a customized investment information service supported by generative AI. It incorporates conversational AI technology, thus enabling investors to receive real-time answers to their stock market-related inquiries. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
25-06-2025
- Business
- UPI
Korea's Meritz Securities partners with AWS for AI platform
June 25 (UPI) -- Meritz Securities, one of South Korea's leading brokerage houses, announced a partnership Tuesday with Amazon Web Services to introduce innovative services. Under the cooperation with AWS, the world's top cloud service provider, Meritz Securities plans to develop personalized financial platforms powered by artificial intelligence applications. Meritz Securities has channeled resources to strengthen its AI research capabilities and come up with futuristic financial platforms. Toward that end, the Seoul-based company founded a dedicated in-house organization, called the Inno Biz Center, early this year and attracted dozens of info-tech and financial experts. "This collaboration will serve as a turning point for us as we transform into a next-generation AI-driven financial corporation," said Meritz Securities Senior Vice President Lee Jang-wook, who leads the Inno Biz Center. An increasing number of South Korean brokerages take advantage of AI technologies. Late last month, for example, Mirae Asset Securities launched a new service, which uses AI to identify and deliver real-time insights into the causes of sharp stock price fluctuations in overseas markets. The service automatically scans U.S. stocks, which rose or fell by more than 2% during the previous trading session and identifies reasons by going through disclosures or key events. It then summarizes related global news and provides investors with concise explanations. In April, KB Securities unveiled "Stock GPT," a customized investment information service supported by generative AI. It incorporates conversational AI technology, thus enabling investors to receive real-time answers to their stock market-related inquiries.
Yahoo
29-05-2025
- Business
- Yahoo
South Korea May exports expected to fall as US tariffs offset robust chip demand
By Jihoon Lee SEOUL (Reuters) - South Korea's exports are expected to have fallen in May for the first time in four months, as the impact of U.S. President Donald Trump's tariffs offset strong demand for semiconductors, a Reuters poll showed on Thursday. Exports out of Asia's fourth-largest economy are forecast to have fallen 2.7% this month from a year earlier, according to a median of 16 economists. That would be the first year-on-year decline since January. South Korea - the first major exporting economy to report trade figures each month - is scheduled to release data for May on Sunday, June 1, at 9 a.m. (0000 GMT). In April, exports unexpectedly rose 3.7%, even as U.S.-bound shipments dropped 6.8%. Robust chip sales, especially those of high-end products for artificial intelligence, offset declines in cars hit by Trump's tariffs. "Semiconductor exports have been stronger than expected in May, but that might be due to advance orders amid worries about U.S. tariffs on chip imports," said Chun Kyu-yeon, an economist at Hana Securities. In the first 20 days of this month, exports fell 2.4%, with shipments to the U.S. dropping 14.6% and those to China declining 7.2%. Trump has imposed 25% duties on imports of automobiles and steel products and suggested more duties on semiconductors and pharmaceuticals. His reciprocal tariffs announced in early April, including 25% levies on South Korea, are currently on pause for negotiations, except the 10% baseline. In May, Washington and Beijing agreed to pause their trade war by unwinding most of the tariffs on each other's goods for 90 days. "What is concerning is that we are seeing declines in exports not only to the United States, but also to China, suggesting a slowdown in global trade," said Stephen Lee, an economist at Meritz Securities. Lee expects South Korea's exports to fall in the second quarter, after they declined for the first time in 1-1/2 years in the prior quarter. "It is still too early to declare a clear easing of tariff risks," said Oh Suk-tae, an economist at Societe Generale, noting uncertainty around the July 9 and August 12 deadlines for the 90-day pause on reciprocal tariffs and a truce with China. South Korea's imports are projected to have fallen 3.1% in May, after dropping 2.7% in April, according to the survey conducted on May 19-28. The median estimate for the country's trade balance stood at a surplus of $4.61 billion, compared with $4.88 billion in the previous month. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
