Bank of Korea

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

Bank of Korea

March 10, 2016

The South Korean central bank’s seven-day repo rate was left at 1.50%, its level since a 25-basis point reduction in June 2015.  There had been five earlier 25-bp cuts in November 2012, May 2013, August 2014, October 2014 and March 2015.  A statement released after this month’s meeting of the Monetary Policy Board observes that […] More

Euro Rises on ECB Announcements

March 10, 2016

The ECB Governing Council announced a more aggressive package of stimulants than analysts were expecting. All ECB central bank interest rates including the main refinancing rate were lowered. The size of monthly quantitative asset purchases was increased 33% to EUR 80 billion and will run at least through end-2017. The types of eligible assets in […] More

Bank of Korea

February 16, 2016

The seven-day repo rate was left at 1.5%, its level since a 25-basis point cut last June.  Five such reductions were spaced out between May 2013 and June 2015.  Monetary officials, who meet monthly, released a statement, projecting sub-trend, domestic demand-led growth and low inflation.  Considerable attention is being devoted to “external risk factors such […] More

Bank of Korea

January 14, 2016

For a seventh straight monthly meeting, officials at South Korea’s central left the base rate at 1.5%.  It was cut to that level in June 2015 and previously reduced by 25 bps in May 2013, August 2014, October 2014 and March 2015.  A released statement projects a continuing domestic demand-led recovery but expresses disappointment about […] More

Bank of Korea

December 10, 2015

For a sixth straight monthly meeting, officials at the Bank of Korea left the seven-day repo rate unchanged at 1.5%.  Four previous cuts, each by 25 basis points, had been engineered in August and October of 2014 and, more recently, March and June of this year.  A statement from monetary officials observes “the trend of […] More

Bank of Korea

November 12, 2015

A statement released after this month’s monetary policy meeting, which resulted in no changed to the 1.5% 7-day repo rate level, projects continuing domestic demand-led economic recovery and low inflation.  External factors like the reaction to Fed tightening, struggling emerging market demand and oscillating oil prices create high uncertainty in the outlook.  The Bank of […] More

Bank of Korea

October 15, 2015

South Korean monetary officials, as after monthly policy meetings in July, August and September, kept the seven-day repo rate at 1.5%.  It’s already at a record low after 25-basis point reductions in June and April of this year as well as April and October of 2014.  A statement on the bank’s website projects a softer-than-desired […] More

css.php