Bank of Korea

Bank of Korea

May 25, 2017

South Korea’s central bank base rate was again left at 1.25%. It’s been at that level since a 25-basis point cut in June 2016. Previously a pair of such reductions were each implemented in 2014 and 2015. A released statement after the May monthly policy review projects sub-target total core inflation in the mid- to […] More

Bank of Korea

April 13, 2017

South Korea’s central bank base rate was cut five times from August 2014 to June 2016 by a total of 125 basis points, halving the key interest rate to 1.25%. While modestly bumping up projected GDP growth in 2017 from 2.5% that was forecast three months ago, monetary officials still anticipate only moderate expansion and […] More

Bank of Korea

February 23, 2017

South Korea’s central bank retained a 1.25% Base Rate as was expected. That’s been the level for the past eight months. A 25-basis point reduction in June 2016 broke a one-year-long period with no change. Four 25-bp reductions had been implemented in August and October of 2014 and then March and June of 2015. A […] More

Bank of Korea Maintains a Loose Monetary Stance

January 13, 2017

At this year’s first interest rate policy meeting, officials at the Bank of Korea left the seven-day repo rate at a record low of 1.25%, its level since a 25-basis point cut last June. Similarly sized reductions were engineered in August and October of 2014 and March and June of 2015. A statement¬†released today noted […] More

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