Bank of Korea

May 13, 2016

The South Korean central bank base rate has been left at 1.5%, the level since a 25-basis point cut in June 2015 culminated a percentage point of easing over nine months.  A released statement from the policy board again projected modest domestic demand-led growth with a high level of externally-related uncertainty.  Scope for cutting rates is very limited in light of upwardly-drifting core inflation, a 1.0% rate of actual inflation, recent won depreciation including today, and a desire to preserve stable domestic financial markets.

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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