South Korea
No Change in South Korean Monetary Policy This Month
December 9, 2010
The Bank of Korea left its seven-day repo rate at 2.5%, having raised such previously only twice and by 50 basis points in all, which is less than many other central banks in Asia. Those advances of 25 basis points each were implemented in July and November of this year. At 2.50%, the benchmark interest rate […] More
Bank of Korea Tightens for a Second Time
November 16, 2010
Korea’s seven-day repo rate has been raised from 2.25% to 2.5%, a move that analysts predicted. An initial tightening on July 9 had also been by 25 basis points, but the ensuing policy meetings in August, September and October had left the key interest rate steady partly because of concern about a rising won. A […] More
Bank of Korea Fails to Raise Key Interest Rate
October 14, 2010
For a third straight monthly meeting, the seven-day repo rate was left at 2.25%. This decision was made in the face of an increasing risk factor from the volatility of exchange rates. That factor is getting greater priority than rising CPI inflation, which has advanced to a 12-month pace of 3.6% compared to 2.2% a […] More
Surprise Decision from the Bank of Korea
September 8, 2010
South Korea’s seven-day repo rate was left at 2.25%. Even though officials had paused tightening at their previous meeting of August 12 following an initial 25-basis point increase on July 9, most analysts were predicting a second 25-bp hike today. At 2.25% versus a previous cyclical high of 5.25% prior to August 2008, the key […] More
No Change This Month in South Korean Central Bank Rate
August 12, 2010
The decision by the Bank of Korea to leave the seven-day repurchase rate at 2.25% seems to be a pause rather than an indefinite halt in efforts to return to a more normal, less accommodative monetary stance. Officials expect the domestic economy to “continue on an upward track, even in the presence of external risk” […] More
Bank of Korea Policy Unchanged
March 11, 2010
South Korea’s Monetary Policy Committee kept its key interest rate at 2.0% as expected. Cuts totaling 100 basis points in August 2008, 175 bps in December 2008 and 50 bps in February 2009 slashed the rate from 5.25% to 2.0%, where it has been ever since. A statement on the Bank of Korea website retains the […] More
