Bank of Korea

July 10, 2014

The seven-day repo rate has been at 2.5% since cuts of 25 basis points in November 2012 and May 2013.  2.5% remains above the current 1.7% 12-month rate of inflation.  The latest policy statement continues the dovish tone, revises projected growth and inflation in 2014 and 2015 downward, predicts a moderately paced narrowing of the output gap, and mentions that future policy may be influenced by external developments like the shifts in other countries’ monetary policies.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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