The Central Bank of South Korea, known as BoK, decided to raise its basic interest rate by 25 basis points, to 3.25%, after concluding a monetary policy meeting this Thursday (24th) at local time.
With the adjustment, which came in line with expectations, the South Korean BC slowed the pace of policy tightening, after raising the seven-day repo rate by 50 basis points in October.
The BoK also cut its projection for growth in South Korea’s Gross Domestic Product (GDP) in 2023, from 2.1% to 1.7%. In 2021, the South Korean economy expanded by 4.1%, but growth has lost steam this year, with exports falling in October for the first time in two years amid weak global demand.
Turning to inflation, the BoK now expects consumer prices to rise by 5.1% next year, rather than 5.2% more.
The new projection, however, remains well above the BoK’s 2% inflation target.
Source: CNN Brasil
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