BOK extends key rate freeze to 1 year, maintains growth outlook at 2.1%

South Korea's central bank decided to keep its key interest rate unchanged for the ninth consecutive session on Thursday. This decision comes amidst concerns about slower-than-expected inflation reduction and high levels of household debt. The bank also maintained its growth forecast for the year at 2.1 percent.

As widely anticipated, the monetary policy board of the Bank of Korea (BOK) opted to leave its policy rate steady at 3.5 percent. This decision marks the ninth consecutive freeze since February of the previous year.

This series of rate freezes follows a period of seven consecutive rate hikes from April 2022 to January 2023. The decision to maintain the rate freeze reflects the current state of South Korea's economy. While there are signs of recovery in exports, consumer spending remains subdued due to easing inflationary pressures.

In terms of economic performance, last year saw the economy grow by an estimated 1.4 percent, meeting the central bank's expectations. However, this growth rate represents a slowdown compared to the previous year's 2.6 percent expansion and the 4.1 percent growth recorded in 2021.

Looking ahead, the central bank has retained its growth forecast at 2.1 percent for the year and has kept its inflation outlook steady at 2.6 percent

Upvote the post and comment on it and resteem it