At its 12 July monetary policy meeting, the Bank of Korea (BoK) unexpectedly cut the Base Rate by 25 basis points, from 3.25% to 3.00%. The decision marked the first policy rate change in a year and the first rate cut since February 2009. The bank cited moderate global economic recovery and intensifying downside risks to growth. In the accompanying statement, the BoK stressed the sluggishness of the Euro area economies, in addition to signs of moderation in emerging markets and a deterioration in the United States. Against this backdrop, the Bank believes that the domestic economy will sustain a negative output gap for a considerable time going forward, due mostly to the increase in euro area risks and the sluggish economies of its major trading partners.
Korea Monetary Policy
Central Bank cuts rate in a unexpected move
July 12, 2012
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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.