South Korea

No Change in South Korean Monetary Policy This Month

December 9, 2010

The Bank of Korea left its seven-day repo rate at 2.5%, having raised such previously only twice and by 50 basis points in all, which is less than many other central banks in Asia.  Those advances of 25 basis points each were implemented in July and November of this year.  At 2.50%, the benchmark interest rate […] More

Bank of Korea Tightens for a Second Time

November 16, 2010

Korea’s seven-day repo rate has been raised from 2.25% to 2.5%, a move that analysts predicted.  An initial tightening on July 9 had also been by 25 basis points, but the ensuing policy meetings in August, September and October had left the key interest rate steady partly because of concern about a rising won.  A […] More

Bank of Korea Fails to Raise Key Interest Rate

October 14, 2010

For a third straight monthly meeting, the seven-day repo rate was left at 2.25%.  This decision was made in the face of an increasing risk factor from the volatility of exchange rates.  That factor is getting greater priority than rising CPI inflation, which has advanced to a 12-month pace of 3.6% compared to 2.2% a […] More

Surprise Decision from the Bank of Korea

September 8, 2010

South Korea’s seven-day repo rate was left at 2.25%.  Even though officials had paused tightening at their previous meeting of August 12 following an initial 25-basis point increase on July 9, most analysts were predicting a second 25-bp hike today.  At 2.25% versus a previous cyclical high of 5.25% prior to August 2008, the key […] More

No Change This Month in South Korean Central Bank Rate

August 12, 2010

The decision by the Bank of Korea to leave the seven-day repurchase rate at 2.25% seems to be a pause rather than an indefinite halt in efforts to return to a more normal, less accommodative monetary stance.  Officials expect the domestic economy to “continue on an upward track, even in the presence of external risk” […] More

Bank of Korea Policy Unchanged

March 11, 2010

South Korea’s Monetary Policy Committee kept its key interest rate at 2.0% as expected.  Cuts totaling 100 basis points in August 2008, 175 bps in December 2008 and 50 bps in February 2009 slashed the rate from 5.25% to 2.0%, where it has been ever since.  A statement on the Bank of Korea website retains the […] More