Bank of Korea Keeps Record Low 2.0% Interest Rate
January 14, 2015
Since November 2012, South Korea’s main interest rate has been reduced four times by 25 basis point each, most recently this past October. A released statement after the first monetary policy meeting of 2015 is dovish in tone, observing slower export expansion, a recovery of domestic demand that is not strong, a negative output gap that’s likely to persist for “a considerable time,” weak economic sentiment, and sub-1.0% headline inflation. However, the statement does not explicitly warn that the record low 2.0% interest rate is poised to drop further soon.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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