At its 9 November monetary policy meeting, the Bank of Korea (BoK) left the Base Rate unchanged at 2.75%. The decision, which followed a 25 basis points cut in October, was in line with market expectations. The move came on the back of recent signs of a rebound in economic activity, as exports rose for the first time in four months in October. In the accompanying statement, the Bank noted that "exports appear to be emerging from their downtrend and consumption and investment have turned around to increases." On the other hand, the BoK reiterated that the deepening of the Euro area crisis and a weak recovery in the United States continue to pose downside risks to growth. Regarding price developments, the Bank expects inflation to remain within the 3.0% target for the time being amid easing demand side pressures.
Korea Monetary Policy
Central Bank holds rates on signs of economic rebound
November 9, 2012
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Korea Monetary Policy Chart
Note: BoK Base Rate in %.
Source: Bank of Korea (BoK).
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.