Bank of Korea

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

South Korean Seven-Day Repo Rate Left at Record Low of 1.75%

April 9, 2015

The decision to leave South Korean monetary policy unchanged was most likely an intentional pause rather than a signal that the easing cycle is over.  A 25-basis point cut in March had been the first change in five months and the fourth reduction since May 2013.  If Bank of Korea officials think Fed tightening will […] More

Bank of Korea’s Repo Rate Cut to Record Low of 1.75%

March 12, 2015

The decision to ease was influenced heavily by the incoming tide of other central banks that have cut interest rates and concern that a resulting loss of South Korean price competitiveness could dampen export demand.  Central banks have loosened monetary policy this year in China, India, the euro area, Thailand, Turkey, Indonesia, Israel, Turkey, Poland, […] More

Bond Yields Drop Further but Stocks and Dollar Trim Recent Move

March 12, 2015

Ten-year British gilt and Japanese JGB yields dropped another six and three basis points. The dollar’s uptrend has been interrupted by overnight losses of 2.2% against the New Zealand kiwi, 1.2% versus the Australian dollar, 0.7% vis-a-vis the Swiss franc, 0.6% relative to the euro and loonie, 0.5% against sterling and 0.3% versus the yen. […] More