Korea, Bank of Korea … Economic uncertainty grows – Chosunbiz

The Bank of Korea (BOK) froze its July interest rate at the current rate of 1.5%.

The Bank of Korea (Monetary Policy Committee) met regularly on December 12 to bring the benchmark interest rate to 1.5%, up from 1.5% YoY. Percentage of total

Last month, the Federal Reserve Board (Fed), the central bank of the United States, raised interest rates by 1.75% per annum, and the central bank raised the interest rate of 0.25% in November. At 2.00%. Korea's benchmark interest rate fell 0.5 percentage points from the benchmark US interest rate. Theoretically, if the US-KEB interest rate reversal rate increases, the possibility of foreign capital outflows on the domestic financial market increases. However, the BOK would have frozen the interest rate given the weakness of the national economy. In addition, it is also possible that foreign investors may not be able to withdraw funds because the foreign exchange reserves of more than $ 400 billion and the current account surplus are in good condition.

Recent indicators of employment and industry indicate that the Korea's economic growth engine is greatly weakened. According to the National Statistical Office (ONS), the number of workers increased by only 106,000 last month. Until last year, the increase in the number of employed remained from 200,000 to 300,000 and it exceeded 330,000 in January this year, but the number of employees rose about five months after 100,000 in February.

Retail sales and exports, which show capital investment and corporate consumption, are not good. Total industrial production rose for the third consecutive month and retail sales for the second consecutive month decreased for two consecutive months, although total industrial production increased steadily in April and May due to a rebound in production manufacturing.

I turned around again. Exports, which rose from last year to March, fell in April and then rebounded in May before falling again last month.

In the absence of a sharp recovery in the economy, consumer prices are expected to rise to 1% in the absence of a recovery in the economy. economy. I'm staying. Even with rising international oil prices, the rate of inflation was only 1.5% last month. On the demand side, inflationary pressures are not high, so the low price trend continues.