Bank of Korea
September 9, 2016
The Bank of Korea continues to employ an accommodative monetary stance. Inflation is too low. On-year consumer prices rose 0.4% overall and 1.1% on core components. Both rates were lower than in July. Regarding growth, a statement released today “forecasts that the domestic economy will sustain its trend of modest growth going forward, owing chiefly to expansionary macroeconomic policies, but in view of economic conditions domestically and abroad judges the uncertainties surrounding the growth path to be high.”
South Korea’s Base Rate has been at 1.25% since a 25-basis point cut in June, which was its first change in a year. Three previous reductions of 25 basis points each were implemented in August 2014, October 2014 and March 2015.
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