Fixed South Korea’s interest rate for the 4th time

The South Korean Central Bank today kept the president’s interest rate unchanged for the fourth consecutive time, which was in line with analysts’ expectations in the light of uncertain economic growth expectations and moderate inflation.

The Bank’s Monetary Policy Board decided that the benchmark seven-day repo rate, the main interest rate, would remain unchanged at 3.5 per cent.

According to South Korean news agency Yonhap, this is the fourth consecutive time that the Central Bank of Korea has maintained the President’s interest rate since last February. After seven consecutive interest increases since April 2022, the back-to-back rate freeze cautiously increases expectations that the central bank could halt the active rate hike amid signs of moderate inflation and growing economic slowdown problems.

In May, the Central Bank lowered its economic growth forecast from 1.6 per cent in its previous estimate last February to 1.4 per cent of today’s GDP.

Earlier this month, the Ministry of Finance revised its forecast for this year’s economic growth from 1.6 to 1.4 per cent as well.