South Korean central bank cuts key interest rate
July 12th, 2012 - 2:00 pm ICT by IANSSeoul, July 12 (IANS) Bank of Korea (BOK), South Korea’s central bank, unexpectedly cut its benchmark interest rate to 3 percent Thursday, lowering the 7-day repo rate for the first time in 13 months.
The BOK’s decision was not in line with market consensus as most experts predicted the rate freeze due to conflicting factors such as deteriorating global economic outlook and high inflation expectations, reported Xinhua.
The unexpected rate cut came after central banks in Europe and China lowered their policy rates. The three-year Korean Treasury Bond (KTB) yields fell below the benchmark rate of 3.25 percent for the first time since the global financial crisis, reflecting growing speculation for the BOK’s monetary easing.
The European Central Bank (ECB) was widely expected to lower its policy rate last week due to bleak economic outlook caused by the region’s debt crisis, but the unexpected rate cut by the People’s Bank of China (PBOC) was perceived as a signal of how fragile the world’s No.2 economy became.
- South Korean central bank cuts policy rate (Lead) - Jul 12, 2012
- South Korea's central bank cuts 2012 growth outlook - Jul 13, 2012
- South Korean bank freezes key interest rate - May 10, 2012
- South Korea's central bank freezes key interest rate - Apr 13, 2012
- South Korea's central bank leaves interest rates unchanged - Oct 13, 2011
- South Korean conglomerates see economy worse than 2008 - Aug 22, 2012
- South Korean central bank freezes key interest rate - Jun 08, 2012
- `Downside risks to South Korean economy remain high' - Dec 08, 2011
- South Korean economy shows weaker growth momentum - Aug 09, 2012
- South Korea's central bank leaves key rate unchanged - Jan 13, 2012
- South Korea's central bank lowers 2012 growth outlook - Dec 09, 2011
- South Korea's consumer confidence rebounds - Feb 24, 2012
- South Korea's consumer confidence weakens - Aug 27, 2012
- South Korea's consumer confidence falls - Dec 27, 2011
- IMF urges euro zone to contain crisis - Mar 02, 2012
Tags: bank of china, benchmark interest rate, benchmark rate, bok, central banks, debt crisis, global economic outlook, global financial crisis, inflation expectations, ktb, market consensus, pboc, rate freeze, s central, seoul, south korea, south korean, speculation, treasury bond, xinhua