| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for Bank of Korea > News item |
Bank of Korea's Monetary Policy Committee bumps base rate up to 3¼%
By Jennifer Chiou
New York, June 10 - The Bank of Korea's Monetary Policy Committee opted to raise the base rate by 25 basis points to 3¼%, according to a news release issued by the bank.
The rate had held steady at 3% since March.
Based on currently available information, the committee said that recoveries in major advanced economies showed signs of being somewhat delayed, while emerging market economies continue to show favorable performances. Going forward, it forecasts that the global economy will keep up its pace of recovery.
The committee did add that it recognizes the possibility of sovereign debt concerns in some euro area countries, the political unrest in North Africa and the Middle East as well as the impacts of the Japan earthquake posing downside risks to the global economy.
Despite the temporary sluggishness of domestic demand in Korea, the committee said that the economy has maintained its underlying upward trend on the strength of the sustained high growth of exports while labor market conditions have also remained on a track of improvement.
The release said that consumer price inflation in the low 4% range in May was again at a high level, and the committee expects inflationary pressures to continue in the coming months, driven largely by increased demand from the economic upswing and by inflation expectations.
In the financial markets, stock prices and long-term market interest rates have fallen, and the Korean won depreciated against the dollar, influenced mainly by external risk factors, the release added. Mortgage lending again rose, but at a slower pace than during the previous month.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.