Money in Korea

Korea Money | Economic News & Forecasts

Korea - Money

BOK keeps rates at all-time low in October

At its meeting on 14 October, the Bank of Korea (BOK) kept the base rate at its record low of 0.50%, in line with market expectations.

The Bank’s decision to hold came amid weak activity and a deteriorating labor market. A resurgence of Covid-19 cases globally and the tightening of measures to contain the rise in infections are prompting uncertainty over a recovery in the short term, therefore the BOK decided to maintain its current accommodative policy stance in a bid to counter these setbacks. However, concerns over rising house prices and household debt likely discouraged the Bank from further easing.

Looking forward, the Bank confirmed in its statement that it will “maintain its accommodative monetary policy stance”, assuring it will watch economic developments closely amid the ongoing coronavirus outbreak. Most of our panelists see rates unchanged next year.

Commenting on the outlook, analysts at Nomura noted:

“We believe that monetary policy is likely to remain unchanged for some time for two reasons. First, there is less pressure on the BOK to support the economic recovery, following the announcements of stimulus packages. […] Second, monetary policy is constrained by the effective lower bound and we believe it will take some time for the BOK to design a new policy strategy.”

The next monetary policy meeting is set for 26 November.

FocusEconomics Consensus Forecast panelists see the base rate ending 2020 at 0.50% and 2021 at 0.54%.

Korea - Money Data

2015   2016   2017   2018   2019  
Money (annual variation in %)8.2  7.1  5.1  6.7  7.9  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Korea Money Chart

Korea Money
Note: Annual variation of M2 in %.
Source: Bank of Korea and FocusEconomics calculations.

Korea Facts

Value Change Date
Bond Yield1.681.55 %Dec 31
Exchange Rate1,1560.21 %Dec 31

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.


Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form