Welcome to Tuesday!
Bank of Korea stays on hold amid weak inflation and ascending won
South Korea's key financial institution is widely anticipated to keep its benchmark interest rate intact on Thursday having raised it in November for the first time for more than six years, as a Reuters survey disclosed on Tuesday.
All 17 market experts polled by Reuters during the period January 8- January 15 forecast that the Bank of Korea would keep its benchmark interest rate intact at 1.50% as it closely watches the effects of its November move that was considered to be a potential turning point for tighter monetary policy in the area.
The BOK isn’t supposed to start this year with another interest rate lift having increased the rate from a record-minimum 1.25% on November 30, concluding a five-year easing marathon as a sustained export boom lifts surge.
Notwithstanding the Bank of Korea rate lift, the overall economic position turns to be mixed. As a matter of fact, December inflation hit 1.5%, which is below the BOK's objective of 25, while November factory output rebounded having contracted last month.
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