The Financial institution of Korea held its first Financial Coverage Committee assembly of the brand new yr on Jan. 15 and maintained the bottom rate of interest at 2.50% every year. This marks the fifth consecutive freeze following these in July, August, October, and November of final yr.
This resolution is interpreted on account of prioritizing monetary stability concerns, together with the burden of excessive trade charges and instability within the Seoul metropolitan space housing market. The won-dollar trade price recorded 1,477.5 received primarily based on the day past’s common buying and selling closing value, exhibiting a better degree than through the November financial coverage course assembly final yr (1,464.9 received). The trade price, which had briefly fallen to the 1,440 received degree on account of robust intervention by overseas trade authorities on the finish of final yr, has since risen once more, reversing a lot of the decline.
Amid this case, controversy surrounding received weak spot has expanded to incorporate remarks by abroad authorities. When U.S. Treasury Secretary Scott Bessent talked about on Jan. 14 (native time) that the Korean received was exhibiting extreme weak spot, the won-dollar trade price opened at 1,465.0 received on that day, down 12.5 received from the earlier buying and selling day. Nonetheless, regardless of the short-term adjustment, assessments point out that the trade price degree itself stays comparatively excessive.
