Bank of Korea Leaves Benchmark Rate at 2.0%
December 10, 2009
As expected, the 2.0% central bank rate was retained, and the accompanying statement reiterated that the “accommodative” policy stance would be continued “for the time being.” The last cut was done ten months ago in February and culminated a decline of 325 basis points in just four months. South Korean growth has been brisk, with GDP up 12.3% annualized last quarter. Thanks to an appreciating won, somewhat higher CPI inflation is not expected to persist, and house prices inflation has actually slowed.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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