Korea: Central Bank stays put
May 10, 2012
At its 10 May monetary policy meeting, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25% in a decision that was in line with market expectations. Monetary officials have now remained on hold for 11 consecutive months, after last tightening the reins in June 2011. At the current level, the policy rate sits at its highest point since November 2008. In the accompanying statement, the BoK continued to highlight the sluggishness in the performance of Euro area economies, in addition to signs of moderation in emerging markets. That said, the Bank believes that the Korean economy will gradually return to its long-term trend level going forward, after remaining subdued for some time due mostly to the impact of external risk factors.