At the monetary policy meeting on 16 November, the Bank of Korea (BoK) decided to raise the 7-day repurchase rate by 25 basis points, from 2.25% to 2.50%. The decision, which surprised market analysts, represents the first rate hike in the last four months and the second this year. In its statement, the Central Bank acknowledged the continued pick-up in domestic economic activity in the recent months. The Bank expects demand-pull price pressures and rising commodity prices to continue, which is likely to push inflation higher. Moreover, the phrasing of the monetary statement suggests further interest rate hikes going forward. In its statement, the Bank of Korea dropped any reference to keeping an accommodative policy, which had been present in its monetary policy statements since April 2009. In addition, the wording suggests a shift in priorities from ?economic growth? to ?price stability?.
Korea Monetary Policy
Central Bank raises interest rates for second time in the year
November 16, 2010
Looking for forecasts related to Monetary Policy in Korea? Download a sample report now.
Korea Economic News
October 25, 2016
The Korean economy slowed down in the third quarter of this year, expanding at the weakest pace in over a year.
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.