Seven-Day Korean Repo Rate Kept at 3.25%
December 7, 2011
Bank of Korean monetary policy was left unchanged as expected. Five previous rate hikes of 25 basis points apiece were implemented, but none of these came after June. A new statement on the central bank’s web site projects only a moderate deceleration of inflation, which in November exceeded 4.0%, but also notes that growth has slowed. Like several other monetary authorities in developing economies, officials at the Bank of Korea have prudently paused monetary tightening and “recognize the situation to be one in which downside risks to growth remain high due to the impact of external risk factors.” Before the global recession, the repo rate was at 5.25%, 200 basis points higher than now.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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