`Downside risks to South Korean economy remain high’December 8th, 2011 - 1:34 pm ICT by IANS
Seoul, Dec 8 (IANS) Downside risks to the South Korean economy remained high due to external uncertainties such as Europe’s debt crisis and economic slowdown in major economies, the central bank said Thursday.
“The domestic economy will not deviate significantly from its long-term trend of growth going forward, but downside risks to growth remain high due to the impact of external risk factors,” the Bank of Korea (BOK) said in a statement after the December monetary policy meeting.
The central bank said the global economy was expected to recover at a moderate pace, citing downside risk factors such as the sovereign debt crisis in Europe, the possible economic slump in major economies and the possible unrest in international financial markets.
The BOK left the 7-day repo rate unchanged at 3.25 percent this month, keeping its rate freeze stance for the sixth consecutive month, reported Xinhua.
Touching on inflation, the BOK noted that consumer price growth would slow due largely to the easing of upward pressure on international commodity prices, saying that factors, including the declines in agricultural product prices and the base effect from last year, would work to stabilize prices.
The bank, however, stressed that the pace of decline in the inflation rate would be moderate given factors such as the public utility charge hikes and ongoing high inflation expectations.
The nation’s consumer prices jumped 4.2 percent in November from a year earlier, up from a 3.6 percent on-year gain tallied in the previous month. Core consumer prices, which exclude volatile agricultural and oil product prices, advanced 3.5 percent on-year last month, up from a 3.2 percent rise a month earlier.
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- South Korean economy shows weaker growth momentum - Aug 09, 2012
- South Korean economic indicators weaken - May 08, 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 faces consumer price instability - Mar 06, 2012
- South Korea's central bank lowers 2012 growth outlook - Dec 09, 2011
- South Korean central bank cuts key interest rate - Jul 12, 2012
- South Korean economic indicators weakening on sagging export - Aug 07, 2012
- South Korea's producer prices fall - May 08, 2012
- South Korea's consumer price growth slows in October - Nov 01, 2011
- US banks see moderate economic growth with risks - Jun 09, 2012
- South Korea's consumer price growth hits 14-month low - Mar 02, 2012
- Canada holds bank rate at 1 percent - Jan 18, 2012
- South Korea's central bank leaves key rate unchanged - Jan 13, 2012
Tags: agricultural product prices, commodity prices, core consumer, debt crisis, domestic economy, downside risk, downside risks, economic slowdown, economic slump, global economy, inflation expectations, inflation rate, international commodity, international financial markets, moderate pace, oil product, rate freeze, south korean economy, sovereign debt, upward pressure