The Bank of Korea just unexpectedly cut its key interest rate to 2.5% fom 2.75%.
This is pretty remarkable, considering that market economists have already been surprised by two other central bank rate cuts this week.
On Monday, the Reserve Bank of Australia unexpectedly lowered its key interest rate to 2.75% from 3%.
Earlier Wednesday, the National Bank of Poland unexpectedly cut its key interest rate to 3% from 3.25%.
These three surprise rate cuts come follow two rate cuts made last week – the ECB cut to 0.5% from 0.75% on Thursday, and the Reserve Bank of India cut to 7.3% from from 7.5% on Friday.
Global growth slowdown, currency wars, etc. – call it whatever you want, but it’s really getting going now.
DailyFX strategist John Kicklighter perhaps put it best in a tweet following the Bank of Korea release:
South Korea just went in for a surprise rate cut 2.75% to 2.50%. Everyone is throwing their hat into the ring. Incredible.
— John Kicklighter (@JohnKicklighter) May 9, 2013