Bank of Korea
No Change in South Korean Monetary Policy
May 10, 2012
The Bank of Korea once again retained a 3.25% Base Rate level. From a Great Recession low of 2.0% maintained from February 2009 until July 2010, five increases of 25 basis points each were enacted but none since June of 2011. Both core and headline inflation eased in April to 1.6% and 2.5%, respectively. The [...] More
Bank of Korea Policy Still on Hold
April 14, 2012
The 3.25% seven-day repo rate was left unchanged after Friday’s meeting of the Monetary Policy Committee. This was the same decision as those reached at the nine previous meetings. From a trough of 2.0%, five increases of 25 basis points each were implemented in July 2010, November 2010, and January, March and June of 2011. [...] More
Bank of Korea
March 7, 2012
The seven-day Korean repo rate was left at 3.25%, its level since June. Analysts had not expected a change. During the Great Recession, the rate was cut from 5.25% to 2.0%, but five 25-bp increases were done between July 2010 and June 2011 to reach the current level. A statement noted that growth has stabilized [...] More
Korean Monetary Policy Still on Hold
February 9, 2012
Five 25-basis point hikes in the Bank of Korea’s seven-day repo rate were done previously in July 2010, November 2010, January 2011, March 2011 and June 10, 2011. Since then, the benchmark has been kept at 3.25%, 200 basis points shy of its pre-August 2008 high. A statement from officials observes low domestic demand and [...] More
Seven-Day Korean Repo Rate Kept at 3.25%
December 7, 2011
Bank of Korean monetary policy was left unchanged as expected. Five previous rate hikes of 25 basis points apiece were implemented, but none of these came after June. A new statement on the central bank’s web site projects only a moderate deceleration of inflation, which in November exceeded 4.0%, but also notes that growth has [...] More
A More Dovish Statement from the Bank of Korea
November 11, 2011
The seven-day repo rate was left at 3.25% for the fifth time in a row. Five previous rate increases of 25 basis points each were implemented in July and November of 2010 and January, March and June of this year. During the current policy pause, Bank of Korea officials had maintained a tightening bias, but [...] More
Korean Monetary Policy Left Unchanged
October 13, 2011
South Korea’s seven-day repo rate has been at 3.25% for the past four months following two hikes in 2010 in July and November and three similar moves in the first half of 2011 in January, March, and June. Three cuts between August 2008 and February 2009 had slashed the benchmark from 5.25% to 2.0%. Inflation [...] More
South Korean Monetary Policy Meeting
September 8, 2011
The Monetary Policy Board had five times earlier hiked the key central bank rate by 25 basis points, doing such in July and November of 2010 and January, March and June of this year. While expressing confidence in future South Korean growth, a statement after officials again declined to tighten further observed that “uncertainty as [...] More
Bank of Korea More Guarded
August 11, 2011
As at other central banks, Bank of Korea monetary authorities are not able to normalize interest rates as quickly as domestic economic conditions would seem to warrant, and the reason is external risks. U.S. and European growth prospects have worsened, and South Korean financial markets have not been immune from the turbulence in other countries. [...] More
Bank of Korea Holds Policy Steady
July 14, 2011
South Korea’s base rRate, which underwent five 25-basis point hikes previously between July 2010 and June 2011, was left at 3.25% this month. A new statement from officials expresses optimism about Korean growth prospects, concern about risks to inflation and determination to pursue price stability above other goals. June CPI inflation of 4.4% was above [...] More
