Korea: Central Bank stays put
February 14, 2013
At its 14 February monetary policy meeting, the Bank of Korea (BoK) left the Base Rate unchanged at 2.75% for a fourth consecutive month, in a move that was in line with market expectations. In the accompanying statement, the Bank acknowledged increasing investment amid "favorable exports", but noted weak economic growth as consumption eases. In addition, the Bank reiterated its view that economic growth in the Euro Area remains sluggish, and thus expects the global economy to exhibit a modest recovery. Regarding price developments, the Bank expects inflation to remain within the 3.0% target for the time being amid easing demand-side pressures. Meanwhile, in a media statement, BoK Governor Kim Choong-soo pointed out that Japan's new expansionary policy operations combined with the ongoing fiscal consolidation in most advanced nations pose a potential source of uncertainty for the country.