Bank of Korea Keeps Rates Unchanged at 3.50%, Too Early on Stable Won Level

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its July meeting for a fourth straight meeting on Thursday as widely expected in a unanimous decision while six of the board members kept the door open for further rate hikes and there was no discussion about cutting rates, said Governor Rhee Chang-yong, who did not reveal his own view. The BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Too Early on Stable Won Level”

Bank of Korea Keeps Rates Unchanged at 3.50%, Higher Rate Remains Possible

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its April meeting as widely expected in a unanimous decision while five of six Board members guide that a higher rate remains possible which is likely geared toward leaning against betting on rate cuts. The BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle with seven straight interest hike and the tenth increase since August 2021. Consumer price inflation has … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Higher Rate Remains Possible”

Bank of Korea Keeps Rates Unchanged at 3.50%, Lowers Headline Inflation Forecast

South Korea’s Monetary Policy Board kept its base rate unchanged at 3.5% during its February meeting. The move follows last month’s hike to the highest level since late 2008 as expected. The move saw the BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle with seven straight interest hike and the tenth increase since August 2021. Consumer price inflation has been falling since hitting a 24-year high of 6.3% in July, but the … Continue reading “Bank of Korea Keeps Rates Unchanged at 3.50%, Lowers Headline Inflation Forecast”

Bank of Korea Raises Rates To 3.50%, Highest level Since August 2008

South Korea’s Monetary Policy Board decided today to raise the Base Rate to 3.50%, the highest level since late 2008 as expected. The move means the BOK has risen rates by 300 cumulative basis points since the BOK started the tightening cycle. This was the BOK’s seventh straight interest hike and the tenth increase since August 2021. Consumer price inflation has been falling since hitting a 24-year high of 6.3% in July, but the current rate of around 5% is … Continue reading “Bank of Korea Raises Rates To 3.50%, Highest level Since August 2008”

Bank of Korea Raises Rates To 3.25%, Highest level Since June 2012

South Korea’s Monetary Policy Board decided today to raise the Base Rate to 3.25%, the highest level since June 2012 as expected with continuing US dollar strength. The move means the BOK has risen rates by 250 cumulative basis points since August 2021. This was the BOK’s sixth straight interest hike and the ninth increase since August 2021. Consumer price inflation has remained high at 5.7% in October due to increases in electricity and gas fees and the accelerating price … Continue reading “Bank of Korea Raises Rates To 3.25%, Highest level Since June 2012”

Bank of Korea Raise Rates Again To 3.00% as US Dollar Batters Won and Yen

South Korea’s Monetary Policy Board of the Bank of Korea decided today to raise the Base Rate to 3.00%, the highest since mid-2019 as expected with continuing US dollar strength. The move means the BOK has risen rates by 225 cumulative basis points since August 2021. This was the biggest increase since the central bank adopted interest rates as its primary policy tool in 1999. Consumer prices in South Korea rose 5.6% year-on-year in September 2022, easing slightly from last … Continue reading “Bank of Korea Raise Rates Again To 3.00% as US Dollar Batters Won and Yen”

Consumer Prices in South Korea Eased Taking Pressure off Bank of Korea

South Korean energy and food prices started declining from elevated levels in August. Consumer prices in South Korea rose 5.6% year-on-year in September 2022, easing slightly from last month’s 5.7% and below the consensus forecast of 5.7%. This could take some pressure off the Bank of Korea in their fight against inflation. South Korea’s Monetary Policy Board of the Bank of Korea were among the first central banks to begin its tightening cycle last year. Bank of Korea raised its … Continue reading “Consumer Prices in South Korea Eased Taking Pressure off Bank of Korea”

With Inflation at 24 Year Highs Bank of South Korea Raise Rates Again To 2.25%

South Korea’s Monetary Policy Board of the Bank of Korea decided today to raise the Base Rate to 2.25%, the highest since mid-2019 as expected. The move means the BOK has risen rates by 150 cumulative basis points since August 2021. This was the biggest increase since the central bank adopted interest rates as its primary policy tool in 1999. With consumer inflation at 6 per cent in June, the highest level since 1998 the Bank is in one of … Continue reading “With Inflation at 24 Year Highs Bank of South Korea Raise Rates Again To 2.25%”

South Korea Won Weakness Accelerates To 13 Year Low Against U.S. Dollar

The Japanese Yen and South Korean won have been falling sharply lower in 2022. The won has weakened more than 8% this year, following an 8.6% drop in 2021, which was the fastest annual fall since 2008. The Won on Thursday fell below the much talked about psychological threshold of 1,300 per U.S. dollar for the first time in 13 years, amid global economic recession worries and the dollar’s strength. The won weakened as much as 0.24% in onshore spot … Continue reading “South Korea Won Weakness Accelerates To 13 Year Low Against U.S. Dollar”

With Inflation at Thirteen Year Highs Bank of South Korea Raise Rates Again To 1.75%

South Korea’s Monetary Policy Board of the Bank of Korea decided today to raise the Base Rate to 1.75%, the highest since mid-2019 as expected. The move means the BOK has risen rates by 100 cumulative basis points since August 2021. With consumer inflation down from 13-year highs the Bank is in one of the most forceful tightening campaigns ever by the bank. The Bank of Korea has risen rates from a record low of 0.5 percent amid uncertainty over … Continue reading “With Inflation at Thirteen Year Highs Bank of South Korea Raise Rates Again To 1.75%”