41 C
Wednesday, July 17, 2024

Bank of Korea maintains stance, holds rates

The Bank of Korea (BOK) decided to keep its policy rate unchanged for the fourth consecutive meeting, signaling its commitment to maintaining a restrictive policy stance in order to control consumer inflation.

The BOK kept the seven-day repurchase rate at 3.5%, aligning with the predictions of all 15 economists surveyed by Bloomberg News. In its statement, the central bank emphasized its intention to continue the restrictive policy stance for a significant duration, with a focus on ensuring price stability.

The BOK’s decision to maintain the status quo reflects its objective of curbing price growth while avoiding excessive pressure on a sluggish economy and mitigating credit strains.Central bank of the year: Bank of Korea - Central Banking

Although inflation has recently shown a slowdown, the central bank expects it to rise again, reaching around the 3% level in the future.

Following the BOK’s decision to maintain policy stability in May, Governor Rhee stated that the resolution was unanimous, with six out of seven board members open to the possibility of eventually raising the terminal rate to 3.75%.

The South Korean economy faces a challenging combination of slowing economic activity alongside persistent strength in underlying price trends, despite the deceleration of headline inflation.
Uncertainties persist in the trade sector, particularly regarding the timing of a rebound in the chip industry, even though some improvement was observed in June.

Related Articles

Dubai Visionary Move: Spearheading the Largest Global AI Prompt Engineering Training.

Dubai is set to spearhead the world's largest artificial intelligence (AI) prompt engineering training project, A monumental initiative that underscores the city's commitment to becoming...

Uncomplicating Fitness The Science of Nutrition meets the Art of Eating Well at The Fit Bear

In today's fast-paced world, where fad diets and fleeting fitness trends dominate the landscape, finding a sustainable and scientifically-backed approach to health and wellness...

Dubai Future: Sheikh Hamdan Issues Directive for Government Action on Extreme Weather Preparedness

Dubai: Sheikh Hamdan Initiates Government Action for Extreme Weather Preparedness In the wake of unprecedented rainfall in the UAE, the nation's leadership has swiftly mobilized...

Touchstone Infotech: Pioneering Innovation in Digital Solutions for Small Businesses

Introduction:In the bustling landscape of startups and small businesses, Touchstone Infotech shines as a beacon of innovation and transformative digital solutions. Founded by Prashant...

Emirates Development Bank’s ‘AA-‘ Credit Rating Affirmed by Fitch with Stable Outlook: A Testament to Financial Strength

Emirates Development Bank's 'AA-' Credit Rating with Stable Outlook, Fitch Affirms Fitch Ratings has reaffirmed Emirates Development Bank’s (EDB) ‘AA-‘ credit rating, signaling the bank’s...

Latest Articles