Tuesday, April 12, 2011

Bank of Korea Holds Policy Rate at 3.00%

The Bank of Korea maintained its benchmark seven-day repurchase rate unchanged at 3.00%, opting for a wait-and-see approach. South Korea reported annual inflation of 4.7% (3.3% on a core inflation basis) in March, with the monthly change +0.5% in March off slightly from 0.8% in February. The decision represents a pause in its policy normalisation path, with the Bank noting "We're determined to normalize interest rates,". The Bank also reiterated its focus on maintaining growth, stating its aim of "ensuring that the basis for price stability is firmly anchored while the economy continues its sound growth."



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