At its 8 December monetary policy meeting, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25%, a decision that was in line with market analysts' expectations. After tightening the policy reins in June, the BoK has now refrained from raising rates for five consecutive meetings. At the current 3.25%, however, the policy rate still remains at its highest level since November 2008. In the accompanying statement, the BoK highlighted the ?sluggishness? in the performance of major economies, in addition tosigns of moderation in emerging market economies. Despite the uncertain global outlook, the BoK believes that the Korean economy ?will not deviate significantly from its long-term trend of growth going forward?, although it recognizes that ?downside risks to growth remain high due to the impact of external risk factors?. Meanwhile, inflation picked up, moving once again above the BoK target range of 3.0% 1.0 percentage points in November. The BoK expects prices to stabilize going forward, on the back of moderating agricultural prices and a favourable base effect from last year, although at a moderate pace. The BoK reiterated its intention ?to firmly anchor for price stability amid continuing sound growth of the economy.
Korea Monetary Policy
Central Bank keeps interest rate unchanged
December 8, 2011
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Korea Economic News
October 13, 2016
At its 13 October monetary policy meeting, the Bank of Korea (BoK) announced that it will hold the base rate constant at a record low of 1.25%, which was largely in line with market expectations.
October 5, 2016
In September, consumer prices rose 0.6% over the previous month, which contrasted the 0.1% decrease in August and overshot the 0.2% increase the markets had expected.
October 3, 2016
Korea’s Customs Services reported that exports totaled USD 40.9 billion in September, which represented a 5.9% contraction over the USD 43.4 billion recorded in the same month last year.
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October.
September 30, 2016
In August, industrial production accelerated and expanded 2.3% year-on-year, which was up from both the 1.6% increase registered in July and the 1.6% rise the markets had expected.