Korea: Central Bank stays put in January
January 13, 2012
At its 13 January monetary policy meeting, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25%, a decision that was in line with market expectations. After tightening the reins in June 2011, the BoK has now refrained from raising rates for six consecutive meetings. At the current 3.25%, however, the policy rate still remains at its highest level since November 2008. In the accompanying statement, the BoK continues to highlight the ?sluggishness? observed in the performance of major economies, in addition to signs of moderation in emerging markets. Despite the uncertain global outlook, however, the BoK 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.?