The South Korean central bank, the Bank of Korea (BOK) left the key rates unchanged at 0.75%, citing it is monitoring the impact of the March 16 emergency rate cut and the government stimulus on its economy.
Summary of the statement
Economy may fall below earlier projections.
Growth uncertainty high.
Consumer inflation to fall below earlier projection.
To watch virus outbreak, monetary policies abroad.
Recovery in capital investment subdued, consumption has decreased.
To watch impact of virus on financial stability, markets.
On Wednesday, South Korea’s President Moon Jae-in said on Wednesday, the government is planning additional measures worth 17.7 trln won to support domestic demand.
USD/KRW whipsawed on the BOK rate decision, now back to the familiar trading range around 1,215. The spot trades modestly flat on the day.
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