bond experts-rate outlook

SEOUL, Oct. 20 (Yonhap) -- More than nine in 10 bond mavens in South Korea predict the central bank to freeze its key interest rate for October this week, a poll showed Tuesday.

According to the survey of bond market managers by the Korea Financial Investment Association, 93 percent of the respondents forecast the Bank of Korea (BOK) to hold its policy rate steady at a rate-setting meeting slated for Thursday.

Most bond experts said the BOK is likely to need time to assess market conditions after raising the benchmark rate twice in a row in July and August.

During a parliamentary audit last week, BOK Gov. Shin Hyun-song signaled a possible pause, saying, "When we conduct monetary policy, we always assess how much time economic agents need to adapt and evaluate their ability to do so."

The association also said its bond market survey index (BMSI) stood at 99.1 for November, up from 89.7 for October. A BMSI reading below 100 means more experts expect bond market conditions to worsen going forward.

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