Bank of Korea maintains its key interest rate at 1.5%
- 6 years ago
한은 5월 기준금리 동결,... 6개월째 1.5% 유지
Turning to the nation's central bank monetary policy meeting held today.
In its fourth session of the year... the BOK kept key interest rate pat... at one-and-a-half percent.
Won Jung-hwan help us look beyond the numbers.
The Bank of Korea says it is keeping its base rate steady at one-point-five percent,... continuing its wait-and-see approach for the sixth straight month.
The unanimous board decision was widely expected,... and the bank forecasts the domestic economy to continue its current strong growth trend for the time being.
"The Board judges that the solid trend of domestic economic growth has continued, as consumption and exports have shown favorable movements, although facilities investment has slowed somewhat. Going forward the Board expects domestic economic growth to be generally consistent with the path projected in April"
With the interest rate freeze on Thursday,... South Korea's interest rate remains lower than the U.S. rates for the time being,... which could push the BOK to raise the base rate in the second half of this year in a bid to keep up with the U.S. Fed's rate hike, possibly scheduled for next month, with the Fed also expected to raise rates again later in the year.
But according to one expert,… Korea won't be able to raise the rate, considering some signs of a downturn in the labor market.
"The interest rate gap between Korea and the U.S. is growing. But I think the reason for Korea freezing the rate is due to an economic downturn in the current job market."
Despite parliament passing the extra budget bill this week, the central bank lowered its estimates for job creation to 260-thousand from a previous projection of 300-thousand.
The Bank of Korea said it will monitor the impact of Thursday's rate freeze before the next economic forecast slated for July.
Won Jung-hwan, Arirang News.
Turning to the nation's central bank monetary policy meeting held today.
In its fourth session of the year... the BOK kept key interest rate pat... at one-and-a-half percent.
Won Jung-hwan help us look beyond the numbers.
The Bank of Korea says it is keeping its base rate steady at one-point-five percent,... continuing its wait-and-see approach for the sixth straight month.
The unanimous board decision was widely expected,... and the bank forecasts the domestic economy to continue its current strong growth trend for the time being.
"The Board judges that the solid trend of domestic economic growth has continued, as consumption and exports have shown favorable movements, although facilities investment has slowed somewhat. Going forward the Board expects domestic economic growth to be generally consistent with the path projected in April"
With the interest rate freeze on Thursday,... South Korea's interest rate remains lower than the U.S. rates for the time being,... which could push the BOK to raise the base rate in the second half of this year in a bid to keep up with the U.S. Fed's rate hike, possibly scheduled for next month, with the Fed also expected to raise rates again later in the year.
But according to one expert,… Korea won't be able to raise the rate, considering some signs of a downturn in the labor market.
"The interest rate gap between Korea and the U.S. is growing. But I think the reason for Korea freezing the rate is due to an economic downturn in the current job market."
Despite parliament passing the extra budget bill this week, the central bank lowered its estimates for job creation to 260-thousand from a previous projection of 300-thousand.
The Bank of Korea said it will monitor the impact of Thursday's rate freeze before the next economic forecast slated for July.
Won Jung-hwan, Arirang News.