Bank of Korea

March 7, 2012

The seven-day Korean repo rate was left at 3.25%, its level since June.  Analysts had not expected a change.  During the Great Recession, the rate was cut from 5.25% to 2.0%, but five 25-bp increases were done between July 2010 and June 2011 to reach the current level.  A statement noted that growth has stabilized since the last meeting and not slowed further but that inflation subsided to 3.1% in February in spite of elevated oil prices.  Global risks to growth persist.

Copyright 2012, Larry Greenberg.  All rights reserved.



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