At the monetary policy meeting held on 11 February, the Bank of Korea (BoK) unexpectedly left the BoK Base Rate unchanged at 2.75%. The decision marks a pause in the tightening cycle, which saw the BoK raise interest rates three times since July 2010. At the current level, the policy rate remains at its highest level since January 2009. The Central Bank remains concerned about mounting inflationary pressures, driven by the continued upswing in economic activity and the surge in oil and food prices. Nevertheless, the BoK stated that the effects of the previous tightening moves are filtering through the economy, which is reflected in increasing long-term interest rates. Market analysts believe that the BoK will resume lifting interest rates as early as its next policy meeting on 10 March.
Korea Monetary Policy
Central Bank pauses policy tightening, surprising markets
February 11, 2011
Looking for forecasts related to Monetary Policy in Korea? Download a sample report now.
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.