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SEOUL - Most bond dealers in South Korea expect the central bank to cut its key interest rate on Friday, as Asia's fourth-largest economy stutters due to crisis in the world financial system and on global recession concerns, a survey showed on Wednesday.
The Korea Securities Dealers Association said 75 percent of those surveyed predicted the Bank of Korea would cut its base rate this week, the third cut in a month, amid signs of easing inflation pressures and faster-than-expected economic slowdown.
The remaining quarter of respondents predicted no rate change in November, seeing the central bank opting for a pause after a 75-basis-point cut to 4.25 percent at an emergency meeting on Oct 27. It had lowered its base rate by 25 basis points to 5 percent at a scheduled meeting on Oct 9.
Last month, 91.9 percent of bond dealers predicted no rate change.
The association, whose yield quotations are used as official records for South Korea's debt market, surveyed 136 people from 106 financial institutions, including 21 foreign houses.
The Bank of Korea holds its monthly rate review on Friday.
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