BOK Holds Benchmark Interest Rate at 2.5%
Summary
- The Bank of Korea's Monetary Policy Board held the benchmark interest rate at 2.5%%.
- Governor Shin Hyun-song may signal a future rate increase, citing sharply rising inflation and solid growth.
- The BOK raised this year's economic growth forecast to 2.6%% from 2.0%%, projected growth of 2.1%% next year, and forecast consumer inflation at 2.7%% next year and 2.3%% in 2027.
Forecast Trend Report by Period
The Bank of Korea's Monetary Policy Board held its benchmark interest rate at 2.5% at a monetary policy meeting on May 28.
Uncertainty stemming from the war in the Middle East was cited as the main reason. The conflict, which began in late February with U.S. and Israeli airstrikes on Iran, has stretched into a third month as ceasefire negotiations face last-minute hurdles.
Still, Governor Shin Hyun-song may signal the possibility of a future rate increase at his first press briefing, citing sharply rising inflation and solid growth.
The BOK raised its economic growth forecast for this year to 2.6% from 2.0%. It projected growth of 2.1% next year.
It forecast consumer inflation at 2.7% next year and 2.3% in 2027.
Seong-mi Shim, Korea Economic Daily reporter smshim@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
