Central Banks
Bank of Korea Holds Rate, Signals Inflation Fight Isn’t Over
- Central bank nudges down GDP forecast to 1.4% for this year
- Inflation outlook at 3.5% for 2023, but core pressures linger
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The Bank of Korea left interest rates unchanged for a third straight meeting while reinforcing its message that persistent inflation means an additional hike is still possible.
The central bank kept its seven-day repurchase rate at 3.5% on Thursday as predicted by all 17 economists surveyed by Bloomberg News. Six of seven board members are open to the terminal rate reaching 3.75%. And while officials see inflation rising at a slower pace than their previous forecasts, their outlook still tops market expectations and core prices are seen hotter for 2023.