SEOUL - BOND dealers in South Korea expect the country's central bank to cut key interest rates again at its next policy meeting on Thursday given the looming risk of economic recession, a private survey showed on Friday.

The Korea Securities Dealers Association said 89.9 per cent of those surveyed predicted the Bank of Korea would reduce its base rate at its Dec. 11 meeting, with the latest data suggesting a decline in manufacturing sector output and corporate investment.

Most of the remaining 10.1 per cent predicted the central bank would keep rates on hold in December after it chopped 125 basis points off the base rate to 4.00 per cent in three steps since early October.

The association, whose yield quotations are used as official records for South Korea's debt market, surveyed 140 people from 108 financial institutions, including 20 foreign houses.

The Bank of Korea holds its monthly rate review on Thursday. -- THOMSON REUTERS