Korea's industrial production shrank 3% in March
Will rate cut follow next?
According to BBVA, South Korea's industrial production contracted in March by -3.0% y/y, well below market expectations of -0.7%.
BBVA also said the outturn was influenced by weakness in auto sector output, and could reinforce concerns about the negative fallout of yen depreciation on the Korean economy.
"It might also raise expectations of a possible rate cut by the Bank of Korea in the coming months, despite a better-than-expected Q1 GDP outturn and the BoK’s April 11 decision not to cut rates," BBVA noted.