At the monetary policy meeting held on 13 January, the Bank of Korea (BoK) decided to raise the 7-day repurchase rate by 25 basis points from 2.50% to 2.75%. The move represents the third interest rate increase in the last seven months and follows on similar hikes in July and October last year. At the current level, the policy rate is at its highest level since January 2009. The BoK stated that consumer prices have risen in December on the back of rising prices for food and petroleum products. Going forward, the Central Bank expects inflationary pressures to persist and inflation expectations to rise, driven by the upswing in economic activity and rising international commodity prices. Against this backdrop, the BoK decided to raise the policy rate.
Korea Monetary Policy
Central Bank raises interest rates
January 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.