Full text of BOK statement on monetary policy decision in November

Asia's Tech News Daily

SEOUL, Nov. 25 (Yonhap) — The following is the full text of the Bank of Korea’s statement on its monetary policy decision.

The Monetary Policy Board of the Bank of Korea decided today to raise the Base Rate by 25 basis points, from 0.75 percent to 1.00 percent.

Currently available information suggests that the global economy has continued to recover despite the spread of COVID-19 variants, supported by accelerated vaccinations and the relaxation of restrictions on economic activity in major countries. In global financial markets, the volatility of government bond yields has increased and the US dollar has strengthened, affected by concerns over the prospect of prolonged global inflation and changes in expectations about monetary policy in major countries. Stock prices, especially in advanced economies, have risen, mainly driven by favorable corporate performances. Looking ahead, the Board sees global economic growth and global financial markets as likely to be affected largely by the severity of the resurgence of COVID-19 and the status of vaccine distribution, as well as by global inflation movements and monetary policy changes in major countries.

The Korean economy has continued its sound recovery. Although facilities investment has somewhat slowed due to global supply constraints, exports have sustained their buoyancy and private consumption has shown rapid improvement supported by accelerated vaccinations and the easing of domestic COVID-19 restrictions. Labor market conditions have continued to improve, with a sustained year-on-year increase in the number of persons employed. Going forward, the improvement of private consumption is likely to strengthen, while exports and investment are expected to sustain favorable movements. GDP growth is projected to be around 4 percent in 2021 and around 3 percent in 2022, consistent with the forecast in August.

Consumer price inflation has risen to the lower-3 percent level due to the accelerating increase in the prices of petroleum products and the base effect from the decline in the prices of public services last year. Core inflation (excluding changes in food and energy prices from the CPI) has risen to the mid-2 percent level. The inflation expectations of the general public have increased to the upper-2 percent level. Looking ahead, it is forecast that consumer price inflation will run considerably above 2 percent, exceeding the path projected in August, and then decline gradually, running at around 2 percent for 2022 as a whole. Core inflation is forecast to increase to the upper-1 percent level.

In domestic financial markets, the Korean Treasury bond yield has increased, especially the 3-year yield, due to heightened expectations for monetary policy normalization at home and abroad. Stock prices have risen slightly, affected by stock price movements in major countries, and the Korean won to US dollar exchange rate has fallen. The amount of increase in household loans has lessened somewhat, and housing prices have continued to increase rapidly in all parts of the country.

The Board will continue to conduct monetary policy in order to sustain the recovery of economic growth and stabilize consumer price inflation at the target level over a medium-term horizon, while paying attention to financial stability. The Board will appropriately adjust the degree of monetary policy accommodation as the Korean economy is expected to continue its sound growth and inflation to run above the target level for a considerable time, despite underlying uncertainties over the virus. In this process the Board will judge when to further adjust the degree of accommodation while thoroughly assessing developments related to COVID-19, changes in the pace of growth and inflation, the risk of a buildup of financial imbalances, and monetary policy changes in major countries.
(END)

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Fed's earlier end to tapering prompts call for Korea to increase dollar reserves

Bank of Korea Governor Lee Ju-yeol speaks during a press conference at its headquarters in Seoul, Nov. 25. Yonhap By Lee Min-hyung Korea should increase its foreign exchange reserves amid ... Read more »

Gov't CPTPP push to drag on until after presidential election

The National Assembly is in a plenary session, during which a bill on Regional Comprehensive Economic Partnership (RCEP) passed, Dec. 4. Korea Times file Gov’t refuses to broach politically charged ... Read more »

FSS chief calls for strengthened risk management

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, fifth from left, stands next to leaders of the country’s credit finance firms, including the CEOs of KB Kookmin Card, Shinhan Card, Samsung ... Read more »

(2nd LD) Samsung unveils new leadership, replaces all 3 CEOs

(ATTN: UPDATES with more details in paras 2, 8-11; ADDS photo)By Woo Jae-yeon SEOUL, Dec. 7 (Yonhap) — Samsung Electronics Co. on Tuesday replaced all three CEOs in a surprise ... Read more »

China exports rise but growth eases

China's exports rose by double digits in November but growth declined, while imports accelerated in a sign of stronger domestic demand. Exports rose 21.4 per cent over a year earlier ... Read more »

Reserve Bank of Australia keeps unprecedented low cash rate on hold

The Reserve Bank of Australia has kept official interest rates on hold as widely expected but speculation of a 2022 move continues as fixed rate bargains disappear from the market. ... Read more »

China export growth slows in November but imports accelerate

BEIJING (REUTERS) – China’s exports growth lost steam in November, pressured by a strong yuan, weakening demand and higher costs, but import growth accelerated and came in well above expectations, ... Read more »

(LEAD) Samsung unveils new leadership, replaces all 3 CEOs

(ATTN: UPDATES with more details in last 7 paras; ADDS photos)By Woo Jae-yeon SEOUL, Dec. 7 (Yonhap) — Samsung Electronics Co. on Tuesday replaced all three CEOs in a surprise ... Read more »

Samsung Heavy Industries wins 734 bln won orders for 3 LNG carriers

By Nam Kwang-sik SEOUL, Dec. 7 (Yonhap) — Samsung Heavy Industries Co. said Tuesday that it has bagged two orders worth a combined 734 billion won (US$621 million) to construct ... Read more »

Samsung unveils new leadership, replaces all 3 CEOs

By Woo Jae-yeon SEOUL, Dec. 7 (Yonhap) — Samsung Electronics Co. on Tuesday replaced all three CEOs in a surprise move that the company said was intended to enhance competitiveness ... Read more »

Korea logs current account surplus for 18th straight month in October

gettyimagesbank South Korea logged a current account surplus for the 18th straight month in October, though the surplus was smaller than the previous month due to increased imports amid high ... Read more »

Over 70 pct of state budget to be frontloaded in first half of next year

SEOUL, Dec. 7 (Yonhap) — South Korea said Tuesday it has allocated 73 percent of fiscal spending for implementation in the first half of next year in a bid to ... Read more »

(LEAD) S. Korea logs current account surplus for 18th straight month in October

(ATTN: ADDS more info in paras 5, 9-10) SEOUL, Dec. 7 (Yonhap) — South Korea logged a current account surplus for the 18th straight month in October, though the surplus ... Read more »

S. Korea logs current account surplus for 18th straight month in October

SEOUL, Dec. 7 (Yonhap) — South Korea logged a current account surplus for the 18th straight month in October, though the surplus was smaller than the previous month due to ... Read more »

(URGENT) S. Korea logs current account surplus of US$6.95 bln in October: BOK

(END) Read more »

Liquidators called in after collapse of prominent Aussie crypto platform myCryptoWallet

Liquidators have been called in to wind up another prominent Australian crypto trading platform, with furious customers reportedly down thousands of dollars after being unable to access their accounts. Melbourne-based ... Read more »

(EDITORIAL from Korea Herald on Dec. 7)

Burden on future taxpayersLawmakers increase election year budget despite national debt nearing W1,000tr One of the most important roles for the legislature is to scrutinize the administration’s use of taxpayer ... Read more »

Migrants in Australia to be fast-tracked into jobs to fill shortages, Employment Minister Stuart Robert announces

Migrants already in Australia will be fast-tracked into jobs suffering skills shortages in a bid to meet urgent workforce needs. Employment Minister Stuart Robert will announce the plan to “widen ... Read more »

India's Nayara Energy to start polypropylene production jointly with Rosneft

According to the statement, both sides, appreciating the strength of the Indian petrochemical market, agreed to expand collaboration through Russian participation by way of investment, technological and other ways of collaboration in Indian petrochemical sector Read more »

Putin, Modi urge ministries to finalize talks on mutual protection of investments

The long-term target of the trade and economic relationship between the two countries is an increase by 2025 in bilateral trade to $30 bln and in mutual investment to $15 bln Read more »

First reactor pressure vessel dismantled in Sweden, says Rosatom

The work took 13 months Read more »

Nord Stream 2 can be put into operation only after certification — German ministry

Earlier, it was reported that if energy infrastructure operators want to use it before certification is complete, then penalties will be imposed Read more »

(LEAD) Samsung's Lee embarks on trip to UAE, Saudi Arabia to cement networks, seek biz opportunities

(ATTN: RECASTS headline, lead; ADDS photo; ADDS Lee’s remark in 3rd para) SEOUL, Dec. 6 (Yonhap) — Samsung Group’s de facto leader Lee Jae-yong left for the United Arab Emirates ... Read more »

Russian GAZ Group starts sales of cars in Australia

Sadko Next is the company’s first model on the Australian market Read more »

Indian PM notes ‘particular cooperation' between Russian Far East, Indian states

Long-term decisions are being taken in the economic area for promoting cooperation, Narendra Modi stressed Read more »

One quarter of gas injected this year has been withdrawn from European UGSF, says Gazprom

As of December 4, the European underground storage facilities were 66.78%, or slightly over 72 bln cubic meters full, which is 21.4 bln cubic meters lower than last year Read more »

S. Korea reports additional case of highly pathogenic bird flu

SEOUL, Dec. 6 (Yonhap) — South Korea reported an additional case of highly pathogenic avian influenza at a chicken farm Monday, bringing the total number of cases in poultry to ... Read more »

Putin to hold meeting with Italian business in early 2022, says minister

Denis Manturov also noted that in nine months of 2021 trade turnover between Russia and Italy gained 43% to 17 bln euro Read more »

Uncertainties linger on Omicron, Evergrande default risks

A dealer passes by an electronic board at a dealing room of Hana Bank headquarters in Seoul, Monday. Yonhap Won loses more ground again US dollar By Lee Min-hyung More ... Read more »

S. Korea eyes early implementation of eased capital gain taxes on home sales

SEOUL, Dec. 6 (Yonhap) — South Korea said Monday it seeks the early implementation of a revised act that will raise the tax exemption limit for capital gains of property ... Read more »

Samsung's Lee to visit UAE, Saudi Arabia to cement network, seek biz opportunities

SEOUL, Dec. 6 (Yonhap) — Samsung Group’s de facto leader Lee Jae-yong is set to leave for the United Arab Emirates on Monday, the company said, in the latest move ... Read more »

Hainan hosts first China Sporting Goods and Equipment Import Expo

The exhibition was attended by representatives of more than 300 companies from both China and other countries and regions of the world Read more »

Sanya city concludes its 25th Hainan International Wedding Festival

It was held on November 28-30 in the city's Tianya Haijiao coastal park Read more »

Singapore companies, banks now better prepared to face financial risks: MAS

SINGAPORE – Singapore companies and the banking sector are less vulnerable to financial risks and potential schocks than they were at the begining of the Covid-19 pandemic. The vulnerability of ... Read more »

MAS warns Singapore households on rising mortgage debt ahead of potential interest rate hikes

Household debt as a percentage of GDP rose to 70 per cent in the third quarter of this year from 67.1 per cent a year ago. SINGAPORE – Singapore households ... Read more »

Surge in offshoring sees Australian economy become dependent on modern slavery

The Australian economy is becoming increasingly reliant on the disturbing practice of modern slavery, according to one of the nation’s most powerful workers’ unions. The surge in Aussie businesses offshoring ... Read more »

[Contribution] COVID-19 recovery in Korea: short-term strength, long-term weakness

Park Cyn-young / Courtesy of Asian Development Bank By Park Cyn-young Korea’s economy has fared relatively well during the COVID-19 pandemic, thanks to exceptional crisis management. After the first confirmed ... Read more »

(EDITORIAL from Korea Herald on Dec. 6)

Bleak outlookRising consumer prices, shrinking income amid COVID-19 woes raise uncertainty The long-awaited year-end festive mood is unlikely to be seen in 2021, as South Korea is beset by a ... Read more »

(EDITORIAL from Korea Times on Dec. 6)

Double whammyConsumer prices surge, while income declines South Koreans are bearing the brunt of a double whammy ― soaring consumer prices and declining income. Simply put, they are increasingly worse ... Read more »

Saudi Arabia to allow entry for people vaccinated with Sputnik V from January 1

Saudi Arabia joined 101 other countries approving entry of individuals vaccinated with the Sputnik V vaccine Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic