Bank of Korea also "this year's growth rate 0.9%"…0%-range growth treated as a foregone conclusion
Summary
- The Bank of Korea said it expects the economic growth rate this year to be 0.9%.
- The base interest rate was kept unchanged at an annual 2.50%, and it said that growth in the 0% range is unavoidable due to the delayed recovery.
- Next year's growth forecast was maintained at 1.6%, and inflation was presented as 2.0% this year and 1.9% next year.
The Bank of Korea on the 28th forecast that the Korean economy will grow by 0.9% this year.
The Bank held a Monetary Policy Board meeting on the direction of monetary policy that day and announced this revised economic outlook after keeping the base interest rate unchanged at an annual 2.50%.
The 0.9% economic growth forecast is slightly (0.1% percentage point) higher than the previous forecast of 0.8%. However, as the recovery has been delayed, growth in the 0% range is expected to be unavoidable. This is the same level as the growth forecast (0.9%) recently announced by the Ministry of Economy and Finance. Next year's growth rate was announced as 1.6%. It was the same as the previous announcement.
Inflation was presented as 2.0% this year and 1.9% next year.
Kang Jin-gyu reporter josep@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
