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BOK Forecast ”2.1% or Less Growth Rate Next Year” While Delivering Big Rate Hike

NSP NEWS AGENCY, By hYUNJIN KIM Journali, 2022-10-12 23:29 END7
#환율 #기준 금리 #한국은행

(Seoul=NSP News Agency) hYUNJIN KIM Journalist = The Monetary Policy Board of the Bank of Korea (BOK) took a big step to increase the base rate to 3%, and BOK forecasted the next year’s economic growth rate would be under 2.1%, which was the last outlook.

On 12 October, BOK explained the base rate increase was due to “looming inflation pressure and increasing foreign exchange risks, amid continued inflation”.

And added, “Korean economy would experience decreasing growth rate driven by a global economic slowdown, increased interest rate, etc.”


Also, it announced, “This year’s growth rate would match the outlook in August (2.6%). However, that of next year would be less than the last outlook of 2.1%.”

For the Korean financial market, it said, “The foreign exchange market saw expanding volatility, including increased USD/KRW and net cash outflow of foreign investment in the securities market influenced by strong US dollars and weak Japanese yen and Chinese yuan.”

The analysis was “Long-term market interest rate surged while stocks plummeted,” and “household loans experienced a slight decrease, and housing prices crashed further.”

BOK also suggested possible rising prices due to oil production cuts by major oil-producing countries, which won depreciation.

NSP News Agency hYUNJIN KIM Journalist
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