{"id":2203410,"date":"2024-01-12T08:00:45","date_gmt":"2024-01-11T23:00:45","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203410"},"modified":"2024-01-11T16:03:59","modified_gmt":"2024-01-11T07:03:59","slug":"south-koreas-central-bank-holds-rates-steady-amid-inflation-concerns","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/01\/south-koreas-central-bank-holds-rates-steady-amid-inflation-concerns\/","title":{"rendered":"South Korea\u2019s central bank holds rates steady amid inflation concerns"},"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=10081732&amp;menuNo=200690&amp;pageIndex=1\"><span style=\"font-weight: 400;\">maintained its key interest rate<\/span><\/a><span style=\"font-weight: 400;\"> at 3.5% for the eighth consecutive session amid ongoing concerns about a tepid economic recovery and slower-than-expected moderation of inflation. This decision marks a continuation of the central bank\u2019s rate freezes which began in February, following a series of seven rate hikes between April 2022 and Jan. 2023.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s statement omitted its usual statement regarding the potential need for further rate hikes, suggesting a possible easing of its tightening policy in the future. However, BOK Governor Rhee Chang-yong indicated that it is premature to discuss rate cuts and unlikely for any reduction to occur in the next six months.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s decision to maintain its key interest rate at 3.5% reflects a cautious stance, acknowledging the slower-than-expected moderation of inflation, which, despite its gradual deceleration to 3.2% in December, continues to exceed the central bank\u2019s comfort zone. By holding the rate steady, the BOK aims to balance the need to temper inflation without derailing the <\/span><a href=\"https:\/\/www.moef.go.kr\/nw\/nes\/detailNesDtaView.do?searchBbsId1=MOSFBBS_000000000028&amp;searchNttId1=MOSF_000000000067030&amp;menuNo=4010100\"><span style=\"font-weight: 400;\">nascent signs of economic recovery<\/span><\/a><span style=\"font-weight: 400;\">, as reported by the Ministry of Economy and Finance on Jan. 4.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s omission of its usual statement regarding the potential need for further rate hikes also reflects its concerns about major economies\u2019 monetary policies, including the Federal Reserve\u2019s actions. Analysts expect the Fed to <\/span><a href=\"https:\/\/www.cnbc.com\/2023\/12\/13\/fed-interest-rate-decision-december-2023.html\"><span style=\"font-weight: 400;\">cut the base rate<\/span><\/a><span style=\"font-weight: 400;\"> this year. The omission <\/span><a href=\"https:\/\/koreapro.org\/2024\/01\/forecasting-south-koreas-2024-economic-growth-and-challenges\/\"><span style=\"font-weight: 400;\">potentially signals<\/span><\/a><span style=\"font-weight: 400;\"> the BOK\u2019s intention to also reduce policy rates sometime later this year to bolster economic growth.<\/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 eighth consecutive session amid ongoing concerns about a tepid economic recovery and slower-than-expected moderation of inflation. This decision marks a continuation of the central bank\u2019s rate freezes which began in February, following a series of seven rate hikes between April [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2203412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2203410","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 amid inflation concerns - 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\/2024\/01\/south-koreas-central-bank-holds-rates-steady-amid-inflation-concerns\/\" \/>\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 amid inflation concerns - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea (BOK) has maintained its key interest rate at 3.5% for the eighth consecutive session amid ongoing concerns about a tepid economic recovery and slower-than-expected moderation of inflation. 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