Status Quo at the Bank of Korea
December 12, 2013
South Korea’s central bank base rate has been at 2.5% since cuts of 25 basis points in October 2012 and May of this year, which reversed similar-sized cuts implemented in June and July of 2011. Although growth has moved above 3.0%, a negative output is projected to continue for “a considerable time.” Inflation, which is targeted between 1.5% and 3.5%, is currently under 1.0%. According to today’s statement, “due largely to the stability of international agricultural prices, inflation will remain low for the time being, but it will be higher than its current level.”
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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