Korea: Central Bank stays put in December
December 13, 2012
At its 13 December monetary policy meeting, the Bank of Korea (BoK) left the Base Rate unchanged at 2.75%. The decision was in line with market expectations. The move came on the back of signs of a moderate export-led rebound in economic activity.
In the accompanying statement, the Bank noted that, despite improving exports, domestic demand remains sluggish. In addition, the BoK reiterated that the deepening of the Euro area crisis and a weak recovery in the United States continue to pose downside risks to growth. Regarding price developments, the Bank expects inflation to remain low for the time being amid easing demand side pressures.