Home Share Market Bank of Korea raises rate by 25 basis points, easing pace of...

Bank of Korea raises rate by 25 basis points, easing pace of hikes

South Korea’s central bank has eased the pace of interest-rate increases to curb high inflation, lowering its 2023 growth and inflation forecasts.

The Bank of Korea raised the benchmark seven-day repurchase rate by 25 basis points to 3.25% on Thursday, as expected, after an outsized 50-basis-point increase in October.

The downshift came as the bank cut its gross domestic product growth forecast sharply next year and expected inflation to ease moderately but still remain a way above the bank’s targeted 2%.

The bank now expects the country’s GDP to grow 1.7% in 2023, slower than its August forecast of 2.1%. It expects consumer prices to rise 3.6% in 2023, compared with its earlier projection of 3.7%.

Eighteen out of 20 analysts surveyed by The Wall Street Journal before the rate decision had forecast a quarter-percentage-point rate increase.

Most analysts expect the bank to continue but dial back its policy tightening, with some forecasting it could start cutting rates in 2023 to support growth.

South Korea’s economy grew 4.1% in 2021, but its growth has lost steam this year, with exports falling in October for the first time in two years on weak global demand. The country posted a trade deficit for seven months in a row.

Source link


3 UK shares I’d buy after each fell over 40% this year

While some shares have had a banner 2022, many have not. That offers some potential bargains for my portfolio. Here are three...

Express falls after promotional pressure contributes to earnings miss

koto_feja Express (NYSE:EXPR) swung lower in early trading on Thursday after the retailer fell short of estimates with...

European shares fall for fifth day as telecom, real estate drag By Reuters

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 5, 2022....


Please enter your comment!
Please enter your name here

Most Popular

Migrants escape from plane in Barcelona after woman fakes going into labor, Spanish government says

More than a dozen migrants have escaped into Spain Wednesday after fleeing a plane that made an emergency landing in Barcelona when a pregnant...

Solana Price Falls Below $14 – Gloomy Week For The Ecosystem?

In the previous month, Solana (SOL) has failed to make progress as the token fell victim to the market contagion brought about by...

Where to stream the Julia Roberts rom-com Ticket to Paradise | Digital Trends

Rom-coms are a dime a dozen these days. Boy meets girl, girl hates boy, boy pursues girl, girl begins to like boy …...

Red Sox sign Japanese star outfielder who is on-base machine: report

The Boston Red Sox found their outfield addition in free agency overseas, as they quickly signed Japan’s Masataka Yoshida just one day after...

Recent Comments