At the monetary policy meeting held on 11 March, the Bank of Korea (BoK) raised the BoK Base Rate by 25 basis points to 3.00%, marking the fourth interest rate hike since the BoK started tightening policy in July 2010. At the current level, the policy rate is at its highest level since November 2008. Inflation was above the BoK 3.0% 1.0% tolerance range in February for a second consecutive month, driven by the surge in oil and food prices and thus providing a case for a tightening move. In a press briefing released after the meeting, BoK Governor Kim Choong-soo suggested that in the coming months, the BoK will gradually tighten monetary policy rather than raising rates abruptly. Accordingly, market analysts believe that the BoK will refrain from lifting interest rates at its next policy meeting on 12 April.
Korea Monetary Policy
Central Bank lifts interest rates
March 11, 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
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.