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%”

Bank of Korea Leaves Rates Unchanged, Exports Leading Recovery

South Korea’s Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 0.50% for the intermeeting period as expected. GDP growth this year is projected to be above the February forecast of 3.0%. The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its April 2021 meeting, where it has been held since May last year, amid uncertainty over the recent spike in COVID-19 cases.  South … Continue reading “Bank of Korea Leaves Rates Unchanged, Exports Leading Recovery”