Bank of Korea Stands Pat, Maintains Growth and Inflation Forecasts

By Kwanwoo Jun

South Korea's central bank held its policy rate steady as widely expected, while maintaining its growth and inflation forecasts for 2024.

The Bank of Korea on Thursday kept its benchmark seven-day repurchase rate unchanged at 3.50% for a ninth consecutive time, signaling that a policy pivot towards easing may not come anytime soon.

All 21 economists surveyed by The Wall Street Journal ahead of the decision had forecast no rate change, with most expecting rate cuts to start in the second half of the year to help support the country's economic recovery.

The Bank of Korea has maintained that easing but still sticky inflation warrants a restrictive monetary policy "for a sufficiently long period."

The country's headline inflation moderated for a third consecutive month to 2.8% in January but remained above the central bank's 2.0% annual target.

The bank said Thursday that it expects inflation to average 2.6% this year, unchanged from its November forecast.

It expects the country's gross domestic product to grow 2.1% for 2024, unchanged from its earlier estimate.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

February 21, 2024 20:12 ET (01:12 GMT)

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