Bank of Korea

Bank of Korea Hikes Base Rate to 1.75%

November 30, 2018

The Bank of Korea‘s benchmark interest rate has been raised by 25 basis points to 1.75%. This was the second such  increase of the cycle following an initial tightening in November 2017, which had been the first hike since 2011. In between, there were five 25-basis point cuts from March 2014 to June 2016. A […] More

Trump Fighting a Two-Front War Against Fed and Over His Stance on Saudi Arabia

October 18, 2018

Minutes from the FOMC September meeting minutes at which monetary officials again raised interest rates reveal confidence in continuing growth, a view shared by some that the fed funds target is likely to spend a while above the perceived long-run level, and a considerable time allotted to discussion of the ramifications of U.S.-Sino trade tensions. […] More

Bank of Korea

May 24, 2018

There has thus far been only one 25-basis point rate hike following five such cuts administered from March 2014 to June 2016, and a half year has now elapsed since that sole increase. This week’s decision to leave policy unchanged with the repo at just 1.50% was the sixth meeting in a row to end […] More

Bank of Korea Leaves Policy Rate Unchanged

April 12, 2018

After its monthly policy review, South Korean central bank policy board released at statement that leads with a discussion of geopolitical risks. The global financial markets have shown high levels of volatility, with government bond yields and stock prices falling in line mainly with concerns about the worsening trade relations between the US and China. […] More

Bank of Korea

February 27, 2018

South Korea’s seven-day repo rate had been at 1.25% from June 2016 until a 25-basis point increase three months ago, which was the first hike since 2011. A unanimous vote kept the rate at 1.5% in the last meeting of Governor Lee’s 4-year term. Governors rarely serve more than one term. A statement released by […] More

Bank of Korea

January 18, 2018

South Korea’s central bank interest rate had been at 1.25% from June 2016 until late November of 2017 following five 25-basis point cuts in the space of 2-1/4 years. At the end of November, monetary authorities enacted their first increase since 2011, raising the rate by 25 bps to 1.5%. In doing so, the Bank […] More

First South Korean Central Bank Rate Hike in Around Six Years

November 30, 2017

The South Korean Base Rate was lifted to 1.50% from 1.25% but accompanied by a comparatively dovish statement that doesn’t guarantee subsequent increases soon: As it is forecast that inflationary pressures on the demand side will not be high for the time being, while the domestic economy is expected to continue its solid growth, the […] More

Bank of Korea

October 19, 2017

Although keeping the Bank of Korea Base Rate unchanged at 1.25%, its level since a 25-basis point cut in June 2016, the vote to do so was not unanimous and an accompanying statement revised projected GDP growth and inflation slightly upward. Exports and business investment are performing well. Labor market conditions have improved. There are […] More

Bank of Korea

August 31, 2017

The Bank of Korea Base Rate was left unchanged at 1.25%, its level since a 25-basis point cut in June 2016, and that had been the first change in a year’s time. South Korean monetary policy is accommodative, and the next rate change most likely will be an increase than another cut. Inflation has climbed […] More

Bank of Korea

July 13, 2017

Thirteen months have passed since the last base rate change in South Korea, and although central bank officials bumped projected 2017 economic growth up somewhat to 2.8%, the base rate was left at 1.25%. Five cuts spaced out from April 2014 to June 2016 had previously halved the policy interest rate. A statement released today […] More