At the monetary policy meeting held on 14 July, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25%, in a decision which was in line with market analysts' expectations. The move marks a pause in a tightening cycle, which has seen the BoK raising the policy rate five times in the last eleven months, pushing the rate to its highest level since November 2008. According to analysts, the decision to keep rates unchanged was mainly motivated by external factors, as the sovereign debt crisis in the Eurozone and the growth slowdown in the United States increased the downward risks present within the global economy. That said, price pressures are mounting, with inflation rising from 4.1% in May to 4.4% in June. In the statement accompanying the decision, the BoK stated that inflationary pressures are expected to persist in the months to come and that it will conduct its monetary policy with a ?greater emphasis? on ensuring price stability. Market analysts interpreted the last statement as a signal that the BoK will resume its hiking cycle as early as its next meeting in August.
Korea Monetary Policy
Central Bank stays put in July
July 14, 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.