At its 13 October monetary policy meeting, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25%, a decision that was in line with market analysts' expectations. After tightening the policy reins in June, the BoK has now refrained from raising rates for four consecutive meetings. At the current 3.25%, the policy rate is at its highest level since November 2008. In the statement accompanying the decision, the BoK highlighted increasing downward risks to the growth outlook in major economies. The subdued global outlook adds uncertainty to development prospects for the export-dependent Korean economy, despite an improvement in domestic factors in recent months. Meanwhile, inflationary pressures moderated, with inflation dropping from 5.3% in August to 4.3% in September on the back of declining prices for agricultural products. The BoK ?expects the pace of decline in inflation to be modest in the coming months, given stubbornly high inflation expectations?. The BoK reiterated that its monetary policy will focus on price stability. According to market analysts, however, the BoK's reference to external downside risks is a signal that the Bank intends to keep interest rates on hold going forward.
Korea Monetary Policy
Central Bank leaves rates on hold amid growth concerns
October 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
Activity in Korea’s manufacturing sector deteriorated significantly in Q3.
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.