South Korea’s central bank held its benchmark rate unchanged at 3.5% today

The Bank of Korea held its benchmark policy rate at 3.5%, itsbeen unchanged since the start of the year.

  • The decision today was in line with expectations of surveyed economists, all 43 were expecting no change to the BoK base rate.

Bank of Korea Governor Rhee comments after the decision:

  • Thursday’s rate decision was unanimous
  • Household debt
    increase in last couple months was faster than expected
  • Will manage
    household debt with micro measures first
  • May consider macro
    policy to tackle household debt, but not for now
  • 6 members wanted to
    keep door open for one more hike
  • Uncertainty is very high regarding US monetary policy
  • Its too early to discuss a rate cut
  • Don’t want to rule out the possibility of a rate cut within this year

This article was written by Eamonn Sheridan at Source