BOK more upbeat on this year’s economy and keeps rate steady at 1.25%
2017.05.25 13:53:59 2017.05.25 15:44:13
The Bank of Korea (BOK) on Thursday predicted that this year’s economic performance will “exceed” 2.6 percent growth recently revised up by the central bank on stronger-than-expected exports and capital investment.
“The trend of domestic economic growth has expanded, as exports and investment have improved,” said the central bank in a statement after a monetary policy meeting that kept the policy interest rate unchanged at 1.25 percent since its last cut in June last year.
Market experts believe that the central bank would raise its annual growth outlook for this year’s gross domestic product (GDP) once again from current estimate of 2.6 percent. In April, the BOK revised up its GDP outlook to 2.6 percent from 2.5 percent estimated in January.
The BOK expected that consumer prices would rise at around 2 percent for the time being, and the inflation throughout the year would remain in the range of its April projection of 1.9 percent.
The BOK said the nation’s household debt grew faster than last year, but bank loans have begun to ease.
The monetary policy board said in a statement that it would maintain its stance of monetary policy accommodative as “the inflationary pressures on the demand side are not expected to be high although the trend of domestic economic growth is likely to expand.” It added that it will “closely monitor” the U.S. Federal Reserve’s monetary policy normalization.
“The trend of domestic economic growth has expanded, as exports and investment have improved,” said the central bank in a statement after a monetary policy meeting that kept the policy interest rate unchanged at 1.25 percent since its last cut in June last year.
Market experts believe that the central bank would raise its annual growth outlook for this year’s gross domestic product (GDP) once again from current estimate of 2.6 percent. In April, the BOK revised up its GDP outlook to 2.6 percent from 2.5 percent estimated in January.
The BOK expected that consumer prices would rise at around 2 percent for the time being, and the inflation throughout the year would remain in the range of its April projection of 1.9 percent.
The BOK said the nation’s household debt grew faster than last year, but bank loans have begun to ease.
The monetary policy board said in a statement that it would maintain its stance of monetary policy accommodative as “the inflationary pressures on the demand side are not expected to be high although the trend of domestic economic growth is likely to expand.” It added that it will “closely monitor” the U.S. Federal Reserve’s monetary policy normalization.
By Boo Jang-won
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]
