PREVIEW: The BOK is expected to keep its policy rate on hold at its rate review Friday and will likely stand pat for the rest of the year because it needs time to gauge the effectiveness of its latest monetary easing and there are signs of the economy picking up. All 15 analysts surveyed by Dow Jones Newswires tip the BOK to keep rates on hold at 2.75% after a 25-bps cut last month and another similar reduction in July. Four of them, however, forecast the BOK would resume cutting the rate in 1Q13, citing external uncertainties. "The Bank of Korea appears to have completed its monetary easing cycle. Recent data show the signs of economic stabilization, which should put the central bank back in wait-and-see mode, using its time to judge whether the upward momentum can be sustained," says HSBC economist Ronald Man. The rate decision is due around 0100 GMT Friday.
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