At the monetary policy meeting on 9 December, the Bank of Korea (BoK) decided to leave the 7-day repurchase rate unchanged at 2.50%. In its statement, the Central Bank acknowledged the continued pick-up in domestic economic activity in recent months. While consumer prices have recently decreased due to the stability of food prices, the continued upswing in economic activity led to demand-pull price pressures. In addition, rising commodity prices, will likely push inflation higher in the months to come. However, the BoK acknowledged the presence of greater uncertainty in the global economic situation, as financial markets remain concerned about the creditworthiness of some members of the Eurozone. Moreover the recent confrontation between South and North Korea contributed to further uncertainty in financial markets, affecting in particular the South Korean won. Against this backdrop, the Bank of Korea decided to leave interest rates unchanged.
Korea Monetary Policy
Central Bank leaves interest rates unchanged
December 9, 2010
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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.
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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
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.
September 30, 2016
Activity in Korea’s manufacturing sector deteriorated significantly in Q3.