Bank of Korea – Currency Thoughts

Bank of Korea

November 28, 2024

The Bank of Korea’s base rate was cut 25 basis points for the second time in two months, a move that watchers  of South Korean monetary policy were not anticipating. At 3.0% the rate is its lowest in two years but still comfortably above the latest CPI inflation measurement, which was at a 45-month low of 1.3% and near the central bank 1-3% target floor. In addition to ongoing disinflation from a cyclical peak of 6.3% in July 2022, a released statement from monetary officials justified today’s action by citing “an ongoing slowdown in household debt and downward pressure on economic growth that has intensified.”

Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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