SEOUL, May 13 (UPI) — South Korea’s central bank Friday left its benchmark seven-day repo interest rate unchanged at 3 percent despite inflationary pressures.
It was the second straight month the Bank of Korea had taken such action.
Yonhap News agency reported the decision by bank Gov. Kim Choong-soo and his policymakers was a surprise, as only three out of 17 experts in its survey had anticipated the move.
“Consumer prices are likely to sustain their strong upward trend, due mainly to demand-side pressures and high oil prices,” the bank said, adding the Korean economy is on a solid growth track.
However, it said unstable oil prices and the Euro zone debt problems pose downside risks.
Korean consumer prices rose 4.2 percent in April year-on-year, but eased from 4.7 percent in March. The central bank wants to keep the rate below 4 percent.
Similar Posts:
- Wholesale prices rose at a modest pace last month
- China raises bank reserves requirement
- Jump in US consumer spending brightens outlook
- No relief seen from inflation in S. Korea
- Output boost promising for manufacturing
