{"id":2202926,"date":"2023-12-01T08:00:19","date_gmt":"2023-11-30T23:00:19","guid":{"rendered":"https:\/\/koreapro.org\/?p=2202926"},"modified":"2023-11-30T16:48:06","modified_gmt":"2023-11-30T07:48:06","slug":"south-koreas-central-bank-holds-rates-steady-reflecting-global-caution","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/","title":{"rendered":"South Korea\u2019s central bank holds rates steady, reflecting global caution"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Bank of Korea (BOK) has <\/span><a href=\"https:\/\/www.bok.or.kr\/portal\/bbs\/P0000559\/view.do?nttId=10080874&amp;menuNo=200690\"><span style=\"font-weight: 400;\">maintained its key interest rate at 3.5%<\/span><\/a><span style=\"font-weight: 400;\"> for the seventh consecutive time amid concerns over global economic slowdown and ongoing geopolitical risks. This decision follows a series of rate freezes since February and succeeds seven consecutive hikes from April 2022 to Jan. 2023. While maintaining the current year\u2019s growth estimate at 1.4%, the BOK lowered its 2024 growth projection to <\/span><a href=\"https:\/\/www.bok.or.kr\/portal\/bbs\/P0000559\/view.do?nttId=10080880&amp;menuNo=200690\"><span style=\"font-weight: 400;\">2.1%<\/span><\/a><span style=\"font-weight: 400;\"> from 2.2% and increased the inflation forecast for the next year to 2.6% from 2.4%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The South Korean economy faces challenges from <\/span><a href=\"https:\/\/koreapro.org\/2023\/10\/navigating-south-koreas-export-decline-opportunities-amid-economic-pressures\/\"><span style=\"font-weight: 400;\">declining exports<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.kdi.re.kr\/research\/economy\"><span style=\"font-weight: 400;\">weak consumer spending<\/span><\/a><span style=\"font-weight: 400;\">. Despite a recent <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20231129002300320?section=search\"><span style=\"font-weight: 400;\">rebound in exports<\/span><\/a><span style=\"font-weight: 400;\">, led by robust auto-shipments and improvements in the chip sector, the economy\u2019s growth remains uncertain. BOK Governor Rhee Chang-yong highlighted that the 2024 growth outlook of 2.1% is competitive globally, with the current interest rate levels deemed sufficiently restrictive. <\/span><a href=\"https:\/\/koreapro.org\/2023\/07\/managing-south-koreas-record-high-household-debt-a-dual-challenge\/\"><span style=\"font-weight: 400;\">Household debt<\/span><\/a><span style=\"font-weight: 400;\"> continues to rise, contributing to concerns over weakening domestic demand as the central bank closely monitors the interest rate gap with the U.S., which could influence capital flows and inflation.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s decision to hold the key interest rate at 3.5% reflects a cautious stance influenced by the country\u2019s slow recovery in consumer spending and slumping exports. Continued <\/span><a href=\"https:\/\/koreapro.org\/2023\/09\/how-chinas-ongoing-economic-struggles-impact-south-korean-exporters\/\"><span style=\"font-weight: 400;\">economic uncertainties in China<\/span><\/a><span style=\"font-weight: 400;\"> and the semiconductor sector\u2019s slow recovery have dampened South Korea\u2019s economic growth prospects. The BOK\u2019s cautious approach suggests it continues to prioritize economic stability over aggressive monetary tightening.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rate freeze also indicates that the BOK anticipates easing price hikes, aided by stabilizing global oil and agricultural product prices. By maintaining the key interest rate, the BOK aims to balance fostering economic growth and mitigating inflation while navigating the global economic uncertainties and its potential impact on South Korea.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The Bank of Korea (BOK) has maintained its key interest rate at 3.5% for the seventh consecutive time amid concerns over global economic slowdown and ongoing geopolitical risks. This decision follows a series of rate freezes since February and succeeds seven consecutive hikes from April 2022 to Jan. 2023. While maintaining the current year\u2019s growth [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2201597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2202926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea\u2019s central bank holds rates steady, reflecting global caution - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea\u2019s central bank holds rates steady, reflecting global caution - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea (BOK) has maintained its key interest rate at 3.5% for the seventh consecutive time amid concerns over global economic slowdown and ongoing geopolitical risks. This decision follows a series of rate freezes since February and succeeds seven consecutive hikes from April 2022 to Jan. 2023. While maintaining the current year\u2019s growth [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T23:00:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-30T07:48:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2023\/07\/bok.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"548\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"South Korea\u2019s central bank holds rates steady, reflecting global caution\",\"datePublished\":\"2023-11-30T23:00:19+00:00\",\"dateModified\":\"2023-11-30T07:48:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\"},\"wordCount\":293,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/bok.png\",\"keywords\":[\"Business &amp; Economy\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\",\"url\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\",\"name\":\"South Korea\u2019s central bank holds rates steady, reflecting global caution - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/bok.png\",\"datePublished\":\"2023-11-30T23:00:19+00:00\",\"dateModified\":\"2023-11-30T07:48:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/bok.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/bok.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/south-koreas-central-bank-holds-rates-steady-reflecting-global-caution\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"South Korea\u2019s central bank holds rates steady, reflecting global caution\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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