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South Korea Central Bank Keeps Interest Rates Unchanged March 2008

Claus Vistesen (March 7th, 2008) Writes:
South Korea's central bank kept its interest-rate policy unchanged for a seventh month today, citing increasing inflation pressures and the deteriorating global economic outlook. Governor Lee Seong Tae set the seven-day repurchase rate at 5 percent. The yield on South Korea's five-year government bond rose 4 basis points to 5.09 percent, reversing an earlier decline. The won traded at 957.50 per dollar at close of onshore trading in Seoul, little changed from before the decision and posting its biggest weekly loss in seven months. The main Kospi index of shares slumped 2 percent to 1,663.97. Consumer prices rose 3.9 percent in January from a year earlier, the fastest pace in more than three years. Inflation slowed to 3.6 percent in February. The Bank of Korea in December forecast consumer prices to rise 3.3 percent this year. Export ...

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