At its 9 January monetary policy meeting, the Bank of Korea (BoK) decided to keep the base rate on hold at 2.50%. This is the eighth consecutive meeting at which the Bank decided to maintain rates unchanged. The decision was in line with market expectations. The Central Bank stated that Korea's economic activity maintains its strong footing and that the growth trend remains positive. Nonetheless, the BoK acknowledged that a certain degree of slack in the economy will persist in the coming months, although the output gap is expected to narrow. Regarding price developments, the Central Bank stated that it expects inflation to start rising gradually, although it will remain low in the coming months mainly due to the stabilization of global commodity prices. The majority of Consensus Forecast panelists expect the Central Bank to raise the policy rate this year, with an average forecast of 2.72%. For 2015, panelists see the policy rate ending the year at 3.22%.
Korea Monetary Policy
Central Bank stays put in latest meeting
January 9, 2014
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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.