Bank of Korea

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

Bank of Korea Retains 1.5% Seven-Day Repo Rate

September 11, 2015

South Korean monetary policy has an accommodative bias.  Four 25-basis point rate cuts since August 2014 and most recently in June of this year have lowered the benchmark to a record low of 1.5%.  A released statement after this month’s policy meeting is dovish.  South Korean growth was scant and disappointing in the first half […] More

Bank of Korea

July 9, 2015

The latest policy meeting of South Korea’s Monetary Policy Committee ended with no further change in the seven-day record low 1.5% repo rate.  A 25-basis point cut of such in June had been the second reduction of 2015 and the seventh cut from a 3.25% peak since July 2012.  The South Korean economy continues to […] More

Bank of Korea Cuts Repo Rate for Second Time this Year

June 11, 2015

The MERS threat and global challenges such as “changes in the monetary policies of major countries, the weakening of economic growth in emerging market countries, and uncertainties over the restructuring of Greek debt” persuaded Korean monetary authorities to cut the seven-day repo rate by 25 basis points to 1.50% according to an accompanying statement by […] More

Bank of Korea

May 15, 2015

The Bank of Korea’s seven-day repo rate was left at the record-low level of 1.75% as had been expected.  Following a 25-basis point cut in March, this was the second straight decision not to change policy.  Previous cuts of 25 basis points were engineered in November 2013, July 2014 and September 2014.  A statement released […] More