Bank of Korea
May 15, 2015
The Bank of Korea’s seven-day repo rate was left at the record-low level of 1.75% as had been expected. Following a 25-basis point cut in March, this was the second straight decision not to change policy. Previous cuts of 25 basis points were engineered in November 2013, July 2014 and September 2014. A statement released today speaks of “improved sentiment” and notes that “the Committee expects that the domestic economy will show a modest trend of recovery going forward, although the negative output gap will persist for a considerable time.” Consumer prices rose only 0.4% over the last reported year, but comments on future growth are guardedly more hopeful than before.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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