Bank of Korea: No Interest Rate Change this Time
June 13, 2013
Officials at the Bank of Korea voted unanimously to retain a 2.5% seven-day repo rate this month. There had been three cuts of 25 basis points since mid-2012, most recently last month. A statement from the central bank calls the pace of economic growth weak and predicts “a negative output gap for a considerable time, due mostly to the slow recovery of the global economy.” Inflation is below target and has been lower than 2% since October with a present pace of just 1.0%. Officials expect low inflation to persist for the “time being,” and bond yields (up) and share prices (down) have followed adverse Asian trends lately.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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