At the monetary policy meeting held on 12 April, the Bank of Korea (BoK) kept the BoK Base Rate unchanged at 3.00%, in a decision widely expected by the market. The decision marks a pause to the tightening cycle that began in July 2010 and saw the BoK raise the policy rate four times in nine months. Following the latest hike, the policy rate is at its highest level since November 2008. Annual headline inflation reached 4.7% in March and was above the BoK 3.0% 1.0 percentage point tolerance range for a third consecutive month. However, monthly figures showed a moderation in the pace of consumer price increases, as consumer prices added just 0.50% (February: +0.76% month-on-month), thus providing a case for a pause in the tightening cycle, according to market analysts. In a press briefing after the meeting, BoK Governor Kim Choong-soo stated that the Bank is determined to tighten monetary policy and once again confirmed that the BoK will do so gradually rather than raising rates abruptly. Accordingly, market analysts believe that the BoK will refrain from lifting interest rates at its next policy meeting on 13 May.
Korea Monetary Policy
Central Bank keeps interest rates unchanged
April 12, 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.