The Monetary Policy Committee of the Bank of Korea (hereinafter referred to as the Monetary Policy Committee) decided to maintain the base rate of 0.75% per annum at the Monetary Policy Direction Meeting today (12th).
Earlier, the MPC lowered the base interest rate to the lowest level (1.25% → 0.5%) by cutting twice in March and May last year to respond to the economic downturn caused by COVID-19, and then on August 26, 0.25 for the first time in 15 months. % points increased.
The decision was made as a side effect of the release of a lot of money in the market in the meantime, as the 'financial imbalance' such as increase in household loans and rising asset prices worsened, and concerns about inflation (inflation) increased.
However, the MPC did not choose to raise the key rate consecutively at this meeting.
Above all, it is interpreted that the additional hike was postponed until next month's meeting in consideration of the recent sluggish economic indicators and the stock market, which has become very volatile.
With today's rate freeze, the gap with the US Federal Reserve's base rate (0.00-0.25%) was maintained at 0.5-0.75 percentage points.