Bank of Korea

Bank of Korea

December 15, 2016

Four 25-basis point interest rate cuts from August 2014 to June 2015 were followed more recently by yet another 25-bp reduction in June of this year. South Korea’s 7-day repo rate now stands at 1.25%, a record low. A policy statement released today. South Korea is sustaining only modest growth, and inflation is low with […] More

Investors Ponder What the Changes Will Bring

November 11, 2016

The post-election rally of equities hit a bump overnight. Stocks fell 2.5% in India, 4.0% in Indonesia, 1.9% in Hong Kong, 0.7% in Singapore but rose 0.8% in China and Australia. Japan’s Nikkei edged up 0.2% following a huge run-up on Thursday. European share prices are down 1.1% in the U.K., 0.8% in France, 0.9% […] More

Bank of Korea’s Key Interest Rate Left at 1.25%

November 10, 2016

The last change in the 7-day repo rate was a 25-basis point cut in June. Four earlier reductions were made between August 2014 and June 2015. CPI inflation accelerated to 1.3% in October from 0.4% in August, but the forecast of modest growth faces even more uncertainty than before, according to a released statement, because […] More

Bank of Korea

October 13, 2016

Policymakers at the Bank of Korea did not raise their one-week repo rate of 1.25%, a record low, in spite of a tripling of CPI inflation to 1.2% in September and a projection that positive growth will continue in the vicinity of 3%. In a statement released after the October policy meeting, officials stressed the […] More

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 […] More

Bank of Korea

August 11, 2016

South Korea’s Base Rate, which had been cut in June for the first time in a year but was left unchanged after July’s monthly policy meeting, was again not changed following the latest review. A statement again reaffirmed the view that inflation, now under the 1-3% target range at 0.7%, will continue to be low for […] More

Bank of Korean Base Rate Kept at 1.25%

July 14, 2016

A fifth 25-basis point interest rate cut since August 2014 had been implemented at the June monthly policy review, so it’s not surprising that Bank of Korea officials chose to leave the Base Rate steady this time at 1.25%.  In a released statement, Board members predicted modest domestic demand-led growth with considerable uncertainty surrounding that […] More

Surprise Central Bank Rate Cut in South Korea

June 9, 2016

The Bank of Korea’s Base Rate was sliced 25 basis points to 1.25%.  This first rate change in a year was made “to ensure that the recovery of economic growth continues and consumer price inflation approaches the target level over a medium-term horizon.”  Exports are still contracting, and domestic growth since April has evolved more […] More

Market Pessimism Returns

June 9, 2016

Central bank action overnight accentuated the negative. ECB President Draghi made another plea for badly needed structural reform and fiscal support, and he warned of lasting damage to potential growth in the region of prolonged very weak growth with persisting deflationary risks. ECB Governor Villeroy defended very low interest rates as necessary to counter insufficient […] More

Bank of Korea

April 19, 2016

A 1.5% seven-day repo rate was retained yet again.  In the Great Recession, the rate was lowered to 2.0% but raised subsequently to 3.0% by July 2010.  The last six changes were all cuts of 25 basis points spaced between November 2012 and June 2015.  The last of these was decided by a unanimous vote.  […] More