Bank of Korea Retains 2.5% Key Interest Rate
June 12, 2014
Three 25-basis point cuts of the South Korean seven-day repo rate implemented in July 2012, October 2012 and May 2013 constitute the last changes in monetary policy. Thirteen monthly meetings subsequently have ended with essentially the same message that South Korea’s output gap will stay negative, although narrowing gradually, for the time being and that inflation is low but likewise likely to increase gradually for the time being. The latest statement, released today after a unanimous decision, observes that the pace of growth has slowed recently and cites the Seawoll Ferry accident.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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