Fitch sees increasing chances of BOK scaling back to 25-bp in Nov

SEOUL, Nov 11 (Reuters) - Chances are increasing for the Bank of Korea to scale back to a 25-basis-point rate hike in November, a Fitch Ratings official said on Friday, although the agency maintained its baseline scenario for another 50-bp rate hike.

"We forecast the BOK to hike its policy rate by an additional 50bp in the November meeting and remain on hold at a terminal rate of 3.5% through 2023," said Jeremy Zook, sovereigns director at Fitch Ratings.

But the possibility is increasing for the BOK to scale back to a smaller 25-bp hike, considering recent developments in the local bond market and expectations for U.S. monetary policy, Zook said during a press conference held in Seoul.

A larger-than-expected drop in U.S. consumer inflation last month - revealed in U.S. Labor Department data published on Thursday - will likely prompt the Federal Reserve to pare down future interest rate increases as the impact of its swift monetary tightening this year begins to take hold.

The Bank of Korea's monetary policy board next meets on Nov. 24 for its last rate decision meeting this year.

Reporting by Jihoon Lee; Editing by Tom Hogue

Our Standards: The Thomson Reuters Trust Principles.