The Bank of Korea stepped into the rate cut party on May 9, lowering benchmark rates to 2.25% from 2.5%. BoK weaker-than-expected growth in China – South Korea’s largest trading partner, slow growth in Europe and lower consumer price inflation. Or the central bank could have come right and said the weak yen has become a problem for South Korean exporters. Since the cut, EWY has lost 2.1% and the won has remained strong against the yen. [South Korea ETF Lower After Rate Cut]
iShares MSCI Israel Capped Investable Market Index Fund (NYSE: EIS)
The Bank of Israel not only lowered rates on May 13, but revealed a plan to purchase $2.1 billion in foreign currency in an effort to weaken the country’s currency, the shekel. At 1.5%, Israel’s benchmark interest rate resides at a three-year low, but more cuts could be in store because of the strong currency. Whether or not another cut works remains to be seen, but investors may find out sooner than later as the Bank of Israel meets again May 27. EIS is down 0.5% since the most recent rate cut. [Will Twice Be Nice For Israel ETF?]
Market Vectors Poland ETF (NYSEArca: PLND)
The Narodowy Bank Polski, Poland’s central bank, pared its seven-day reference rate by 25 basis points to 3% on May 8. Like the other countries on this list, Poland could be a repeat rate-cutter as swaps on Polish sovereigns are pricing in at least another 50 basis points in rate reductions. Maybe future cuts will prove meaningful to PLND. For now, the ETF is down 2.4% since May 8.
ETF Trends editorial team contributed to this story.