South Korean Monetary Policy Unchanged
July 9, 2009
The Bank of Korea left its seven-day repo rate at 2.0%, the level since a 50-basis point cut on February 12th. This decision had been expected. A statement from the central bank promised to retain the current accommodative stance for the time being and said slumps in exports and domestic demand were moderating, CPI inflation is slowing, and the won and stock market are now stable. The statement credited the improvement to “proactive” monetary and fiscal policies. In all, the central bank made seven rate cuts from October 9 through February 12 totaling 325 basis points, the largest of which was a drop of 100 basis points on December 11.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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