Bank of Korea freezes base rate for the fourth consecutive time…"Keeps at an annual 2.50%"

Korea Economic Daily

Summary

The Bank of Korea reported that it decided to freeze the base rate for the fourth consecutive time.
It stated that the sustained high exchange rate and ongoing financial instability influenced the rate freeze.
It added that the improvement in third-quarter Gross Domestic Product (GDP) growth has reduced the need for a rate cut.

The Bank of Korea on the morning of the 27th held a Monetary Policy Board meeting on the direction of monetary policy at the Bank of Korea's main building on Namdaemun-ro in Seoul and decided to keep the base rate at an annual 2.50%.

After lowering the rate from an annual 2.75% to an annual 2.50% at the Monetary Policy Board meeting in May, the Bank chose to keep the rate unchanged for the fourth consecutive time following the policy direction meetings in July, August and October.

This is understood to be the result of taking into account that the exchange rate remains at a high level and that financial instability, such as in the real estate market, continues. The improvement in growth, such as third-quarter Gross Domestic Product (GDP) rising by 1.2%, was also assessed to have lowered the need for a rate cut.

Reporter Kang Jin-gyu josep@hankyung.com