A rate cut is unlikely to accompany the revisions, however: "The downward revision of growth and inflation outlook has been priced in," ANZ said.  The BOK surprised markets in March, cutting interest rates by 25 basis points to 1.75 percent amid expectations it would stay on hold. The rate cut was a pre-emptive measure amid a subpar growth recovery, the central bank said.  Expectations the central bank could pick up its rate-cutting knife again got a fillip at the end of last month when BOK Gov. Lee Ju-yeol reiterated his concerns about weakness in the economy.  "Sluggish domestic demand centered around consumption is the main factor that we see harming the pace of economic recovery," Lee said, according to Reuters. "It will be difficult for the economy to escape current difficulties in a short period of time."  Read MoreBank of Korea joins the global easing spree  But analysts aren't convinced the central bank will act this time, even though they were surprised last month.  Lee's comments just reinforced expectations that the policy stance is now in a "data-dependent mode," with more rate cuts on the cards, just not yet, ANZ said. "The risk is biased towards another interest rate cut as the sluggish domestic demand seems to drag economic recovery."  HSBC agreed, adding it expects the next rate cut of 25 basis points in the third quarter of this year, citing deterioration in the HSBC purchasing managers' index for Korea for the first time in three months in March.  Others expect the BOK has put its knives away entirely. Citigroup doesn't expect recent data – inflation in particular – to spur the BOK into action.  "Most of the monetary policy committee members believe inflation will pick up later in this year and that deflation concerns are excessive for now," Citigroup said in a note last week.
The Bank of Korea (BOK) may cut its growth and inflation forecasts at Thursday's policy meeting, but it's likely to hold the line against calls for more interest rate cuts.