At the monetary policy meeting held on 13 May, the Bank of Korea (BoK) kept the BoK Base Rate unchanged at 3.00%, in a decision which defied market analysts' expectations. The move represents the second consecutive month the BoK refrained from raising rates. That said, since the tightening cycle started in July 2010, the BoK has raised the policy rate four times in the last nine months and, following the latest hike in March, the policy rate is at its highest level since November 2008. Annual headline inflation moderated from 4.7% in March to 4.2% in April. While remaining above the BoK 3.0% 1.0 percentage point tolerance range for a fourth consecutive month, inflation pressures eased, thus providing a case for extending the pause in the tightening cycle. In a press briefing after the meeting, BoK Governor Kim Choong-soo stated that the approach adopted by the Bank to gradually lift interest rates does not imply that BoK will increase rates every month, thus providing no hint regarding next month's decision.
Korea Monetary Policy
Central Bank holds rates steady for second consecutive month
May 13, 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.