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☆ Asia stocks rise on hopes regional central banks hold steady on rates
▼ + stars: | 2023-04-11 | by ( Selena Li | ) www.reuters.com time to read: +2 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.6% as trading resumed after a long holiday weekend in many major Asian markets. On Tuesday morning, South Korea's central bank held interest rates steady for a second consecutive meeting, as expected. Hong Kong stocks were tech sector gains, with the benchmark Hang Seng (.HSI) climbing 0.9%. The dollar index edged down by 0.098% to 102.36, while the Japanese yen weakened 0.15% versus the dollar to 133.4. In oil markets, U.S. crude gained 0.6% to $80.19 per barrel while Brent was at $84.65, also up 0.6%.

☆ Bank of Korea holds policy rate steady at 3.50%, as expected
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +1 min

SEOUL, April 11 (Reuters) - South Korea's central bank on Tuesday held interest rates steady for a second consecutive meeting, as expected, faced with conflicting risks from still high inflation, a slowing economy and heightened financial uncertainty. The Bank of Korea said its seven-member monetary policy board voted to keep the base rate (KROCRT=ECI) unchanged at 3.50%, as it did on Feb. 23. The decision was in line with predictions from 39 out of 40 economists surveyed by Reuters, while one respondent had forecast a 25-basis-point hike. It is the first time the Bank of Korea has kept the policy rate steady at successive meetings since it embarked on a tightening campaign in August 2021. Reporting by Choonsik Yoo and Jihoon Lee; Editing by Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

[1/2] The logo of the Bank of Korea is seen in Seoul, South Korea, November 30, 2017. The Bank of Korea said its seven-member monetary policy board voted to keep the base rate (KROCRT=ECI) unchanged at 3.50%, as it did on Feb. 23. Local markets showed a muted reaction as investors waited Governor Rhee Chang-yong's news conference from 0210 GMT. It is the first time the Bank of Korea has kept the policy rate steady at successive meetings since it embarked on a tightening campaign in August 2021. Reporting by Choonsik Yoo and Jihoon Lee; Editing by Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Glass half full on disinflation
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +4 min

Headline March consumer price inflation is expected to drop as low as 5.2% from 6% - showing the disinflation journey from more than 40-year highs of 9.2% last June to the Fed's 2% target more than half way there. The rider is that headline inflation rates are expected be below stickier annual 'core' rates, which are forecast to have ticked higher to 5.6% last month. The International Monetary Fund's updated World Economic Outlook is also due on Tuesday ahead of the Fund's Spring meeting in Washington. The disinflation picture was encouraged around the world on Tuesday as Chinese consumer price inflation hit an 18-month low last month and the annual decline in factory prices sped up. Hopes that central bank rates are cresting worldwide lifted risk appetite across the spectrum with major cryptocurrency bitcoin broke back above $30,000 level for the first time in 10 months on Tuesday.

☆ South Korea data shows uneven economic recovery, suggests steady rates
▼ + stars: | 2023-03-30 | by ( Choonsik Yoo | ) www.reuters.com time to read: +2 min

SEOUL, March 31 (Reuters) - South Korea's factory output slumped while retail sales jumped in February, data showed on Friday, signalling an uneven economic recovery and bolstering the market's view that the central bank will keep rates on hold for the rest of the year. The industrial output index fell 3.2% in February from the month before after a 2.4% gain in January, while the retail sales index jumped 5.3% month-on-month after a 1.1% drop in January, according to Statistics Korea. South Korea's central bank, which started raising interest rates in August 2021 ahead of most central banks, has raised the policy rate by 300 basis points from just 0.5% but kept it unchanged at its latest meeting in February. Bank of Korea Governor Rhee Chang-yong told reporters after the February decision that the central bank would not resume its rate hikes if inflation continued to moderate. Economists said the robust retail sales data could be temporary given the worsening outlook for exports, which influence a wide range of economic activity in South Korea.

☆ North Korea says missile launches helped train for missions at any time
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

[1/3] View shows a missile fired by the North Korean military at an undisclosed location in this picture released by North Korea's Central News Agency (KCNA) on March 15, 2023. KCNA via REUTERSSEOUL, March 15 (Reuters) - North Korea's latest missile launches were a military drill designed to train crews to carry out their mission at any time and "annihilate the enemy" if necessary, the country's state media KCNA said on Wednesday. North Korea fired the two short-range ballistic missiles into the sea off its east coast on Tuesday, South Korea's military said at the time, the latest of several weapons tests as the South and the United States conduct their largest joint military drills in years. South Korea's military "strongly condemned" North Korea, calling the repeated missile launches a grave provocation threatening the region's peace and security, and a U.S. State Department spokesperson criticised the launches as violation of multiple United Nations Security Council Resolutions. Reporting by Hyunsu Yim and Josh Smith; Editing by Leslie Adler and Stephen CosatesOur Standards: The Thomson Reuters Trust Principles.

[1/2] Kim Tae-hyun, Chairman & CEO of South Korea's National Pension Service, speaks during an interview with Reuters in Seoul, South Korea, March 3, 2023. National Pension Service/Handout via REUTERSSEOUL, March 6 (Reuters) - South Korea's National Pension Service (NPS), manager of the world's third-largest public pension fund, will collaborate with foreign exchange authorities when needed to help stabilise the market, its chairman told Reuters. "Based on last year's experience, we have prepared measures aimed at easing dollar demand and volatility in the foreign exchange market," Kim said. "A predictable and stable foreign exchange rate is also advantageous to us," he said, adding that cooperation with foreign exchange authorities would be based on achieving good investment returns. With the fund expected to be depleted by 2055, his top priority is to provide support for the government's plan to reform the national pension system, he said.

☆ Bank of Korea holds rates after year of non-stop hikes
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Feb 23 (Reuters) - South Korea's central bank kept interest rates unchanged on Thursday, matching market expectations and ending an uninterrupted run of hikes for a year. The Bank of Korea's monetary policy board held its policy interest rate (KROCRT=ECI) steady at 3.50%, in line with a unanimous call by the 42 economists in a Reuters poll. Governor Rhee Chang-yong is due to hold a news conference soon. Reporting by Choonsik Yoo and Jihoon Lee; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ S.Korea's household credit falls for first time in a decade
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Feb 21 (Reuters) - South Korea's household credit shrank in the fourth quarter of 2022, its first quarterly decline in nearly a decade, central bank data showed on Tuesday. The country's total household credit fell 0.2%, or 4.1 trillion won ($3.16 billion), in the fourth quarter from the previous quarter, to 1,867.0 trillion won by the end of December, according to the Bank of Korea. The quarterly decline was the first since the January-March quarter of 2013 and the biggest percentage fall since the first quarter of 2009. On an annual basis, the total credit increased 0.2%, marking its slowest growth since data collection started in the fourth quarter of 2002. ($1 = 1,297.5000 won)Reporting by Jihoon Lee; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea, Australia central banks renew currency swap agreement
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: 1 min

[1/2] The logo of the Bank of Korea is seen on the top of its building in Seoul, South Korea, March 8, 2016. REUTERS/Kim Hong-Ji/File PhotoSEOUL, Feb 6 (Reuters) - South Korea's central bank said it renewed on Monday a currency swap agreement with its Australian counterpart, valued at 9.6 trillion won or A$12 billion, for five years until early 2028. The agreement, first signed in 2014, allows either party to exchange funds in own currency for the other currency under pre-set terms. The Bank of Korea and the Reserve Bank of Australia have since renewed the agreement several times. ($1 = 1,246.9200 won)($1 = 1.4432 Australian dollars)Reporting by Choonsik Yoo; Editing by Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.

☆ North Korea calls for normalising factories, economy after COVID 'upheaval'
▼ + stars: | 2023-01-19 | by ( Hyonhee Shin | ) www.reuters.com time to read: +2 min

SEOUL, Jan 19 (Reuters) - North Korea's parliament has outlined plans to normalise industrial production and meet its economic goals this year, despite the "worst-ever upheaval" amid the coronavirus pandemic in 2022, state media said on Thursday. The reclusive country's rubber-stamp parliament, the Supreme People's Assembly, held a two-day meeting from Tuesday to discuss government budget, economic policy and personnel changes, the official KCNA news agency said. The premier lauded the country for "successfully tackling the worst-ever upheaval since the founding of the country" amid the COVID-19 outbreak, despite "shortcomings" in implementing last year's plans. He called for normalising the production of metal factories and reinforcing iron mines and steel plants, and for operating chemical plants "at full capacity" to accelerate construction projects. The country will also take "strong measures" to supply equipment, materials and funds to boost coal production, Kim said.

Japan's Nikkei (.N225) fell 0.4% and the yen, which surged 2.7% against the dollar overnight, kept going and rose about 0.2% further to 128.65 per dollar. "No change in policy this month would be a setback for the yen," said Rabobank FX strategist Jane Foley. "However, we would look to buy the yen against the dollar on dips on anticipation of another (policy) move ... in the spring." INFLATION IN RETREATBeyond Japan, market sentiment was dominated by overnight U.S. December inflation data that landed more or less on consensus expectations. The U.S. dollar dropped 0.9% to a nine-month low of $1.0868 per euro and the risk-sensitive Australian dollar rose to a roughly five-month high at $0.6984.

☆ Bank of Korea raises interest rates by 25 bps, as expected
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Jan 13 (Reuters) - South Korea's central bank raised its policy interest rate by 25 basis points on Friday, making a widely expected move that many economists also predicted would mark the end of a tightening cycle that began in 2021. The Bank of Korea said its seven-member monetary policy board had decided to raise its policy interest rate (KROCRT=ECI) to 3.50%, the highest since December 2008. The rise matched a prediction by 36 out of 40 economists in a Reuters poll, in which the remaining four had expected the central bank to hold the rate steady at 3.25%. Friday's decision marked the 10th interest rate rise since the current tightening cycle began in August 2021 and brought the total amount of increase to 300 basis points. Reporting by Choonsik Yoo and Jihoon Lee; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Economists in a Reuters poll had predicted Friday's rate increase would mark the end of a rate-hike cycle that the Bank of Korea's began in late 2021. The Bank of Korea said its seven-member monetary policy board had decided to raise its policy interest rate (KROCRT=ECI) to 3.50%, the highest since late 2008. The interest-rate rise matched a prediction by 36 out of 40 economists in a Reuters poll, in which the remaining four had expected the central bank to hold the rate steady at 3.25%. The decision follows Governor Rhee Chang-yong's remarks this month that the central bank's policy stance would continue to focus on stabilising prices. Like its peers globally, the Bank of Korea is faced with growing pressure to adjust its policy stance as domestic consumer and corporate spending fades and global trade slows.

Throw in increasingly positive signs from China, and the bulls could be leading the charge on Monday. Beijing's abrupt U-turn has triggered huge waves of infections, but investors hope the reopening will eventually bear economic fruit. Analysts are split on whether this paves the way for the company to revive its IPO plans, or results in further delay. There is little in the way of economic data from Asia on Monday, but the flow accelerates later in the week. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Bank of Korea working hard to ensure economy's soft landing -governor
▼ + stars: | 2023-01-03 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Jan 3 (Reuters) - South Korea's central bank governor said on Tuesday the bank will do its best to ensure a soft landing for the economy amid significant internal and external uncertainty. "The Bank of Korea, together with the government, will do its best in making sophisticated policy responses to achieve a soft landing of the South Korean economy, during this time of clouded visibility due to considerable external and internal uncertainties," Governor Rhee Chang-yong said in a speech at a New-Year event. Rhee said the central bank will pay attention to growth and changes in financial and foreign exchange markets, while continuing to focus its monetary policy stance on stabilising prices. The Bank of Korea (BOK) will hold its first rate decision meeting for this year on Jan. 13, having raised interest rates by 275 basis points to 3.25% since August 2021. Reporting by Jihoon Lee; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Korea chief sees more conflict between goals
▼ + stars: | 2023-01-01 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Jan 1 (Reuters) - The head of South Korea's central bank said on Sunday it would likely face an increasing conflict between policy goals in 2023 as the effect of the recent aggressive policy tightening materialises in earnest. "It will be a year when a sophisticated policy mix is more important than ever due to a growing possibility of conflict between inflation, economic growth and financial stability," Governor Rhee Chang-yong said in his New Year's address. He said a fast cooling of the real estate market could cause financial market instability, while listing the war in Ukraine and the COVID-19 situation in China as the main sources of uncertainty facing the country's economy and inflation. Reporting by Choonsik Yoo; Editing by Alison WilliamsOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Korea's Rhee 'not so sure' about digital currencies
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Dec 2 (Reuters) - South Korea's central bank governor Rhee Chang-yong said he became sceptical of the benefits of new technologies related to Central Bank Digital Currencies (CBDC), after recent events in the cryptocurrency market. "I was more positive before, but after seeing the Luna, Terra, and now the FTX issues ... I don't know (if) we will see the real benefit of this new technology, at least for monetary policy," said Rhee, a panelist at a session on digital currency. The market saw another rout last month, after one of the world's biggest crypto exchanges FTX filed for bankruptcy, with crypto lending company BlockFi following suit. Reporting by Jihoon Lee; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ Emerging market policymakers dare to hope for brighter 2023
▼ + stars: | 2022-11-30 | by ( Roberto Samora | ) www.reuters.com time to read: +3 min

He also said a reopening of China could propel the South Korean economy in 2023. "Actually if China loosens zero-COVID policy and reopens their borders and economy that will be a tremendous stimulus for us. Indian Finance Minister Nirmala Sitharaman forecast a "very good" economy ahead of 2024 national elections, fuelled by capital spending. State finance minister Shehan Semasinghe also said the nation was intent on meeting a December deadline to present plans to help unlock an International Monetary Fund bail-out. Zambia, which defaulted on its sovereign debt in 2020, aims to complete its restructuring of nearly $15 billion of external debt in the first quarter of 2023, Finance Minister Situmbeko Musokotwane said.

☆ EXCLUSIVE Bank of Korea ready to adjust tightening pace, hopes for peak rate near 3.5%
▼ + stars: | 2022-11-30 | by ( Cynthia Kim | ) www.reuters.com time to read: +3 min

[1/2] South Korea's new central bank governor Rhee Chang-yong speaks during his inauguration ceremony in Seoul, South Korea April 21, 2022. But he added that South Korean interest rates should not get too far below those of the United States, because of the risk of capital outflow. With the policy rate now at 3.25%, Rhee hopes it will not have to go much higher. It is the first time that the central bank governor has specified a level around which he hopes rates will peak. The Fed's policy rate is currently 3.75% to 4.00%.

☆ Bank of Korea ready to readjust tightening pace, going by data
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Nov 30 (Reuters) - South Korea's central bank is ready to readjust the pace of its policy tightening to respond to an economic slowdown and a slumping property market, the bank's governor told the Reuters NEXT conference on Wednesday. But Rhee Chang-yong declined to say whether the Bank of Korea would stop raising interest rates before the U.S. Federal Reserve, though he added that it was now better able to take into account domestic factors than before. The Bank of Korea, which was among the first central banks of major economies to start raising rates in August last year, has lifted the benchmark rate by a total of 275 basis points from a record low figure of 0.5%. Reporting by Cynthia Kim, Choonsik Yoo and Jihoon Lee; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea's central bank raises rates by 25 bps, as expected
▼ + stars: | 2022-11-24 | by ( Cynthia Kim | Jihoon Lee | ) www.reuters.com time to read: +1 min

SEOUL, Nov 24 (Reuters) - South Korea's central bank raised interest rates by a more modest 25 basis points on Thursday, as expected, slowing the pace of policy tightening as it tries to tame inflation without choking off economic growth. The Bank of Korea (BOK) raised its benchmark policy rate (KROCRT=ECI) to 3.25%, the highest level since July 2012, after delivering a half-percentage point hike in October. All but one of 30 economists expected the central bank to opt for a quarter-point hike in a Reuters poll, while one forecast another half-point rise. The Bank of Korea has raised the policy rate by a total of 275 basis points since August 2021 from a record low of 0.50%. Reporting by Cynthia Kim, Jihoon Lee and Choonsik Yoo; Editing by Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.

The Bank of Korea (BOK) raised its benchmark policy rate (KROCRT=ECI) to 3.25% on Thursday, the highest level since 2012, after delivering a half-percentage point hike in October. The BOK is in the midst of its most aggressive policy tightening on record, having been a front-runner in withdrawing pandemic-era stimulus in the region when it started raising interest rates in August 2021. Since then, it has raised rates by a total of 275 basis points, delivering bigger 50-basis-point rate hikes for the first time since the current monetary framework was introduced in 1999. The central bank aims to keep inflation at 2%. The slowdown in the tightening pace has also been facilitated by a rebound in the local currency.

☆ South Korea producer inflation hits 16-month low in Oct
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Nov 24 (Reuters) - South Korea's annual producer inflation slowed for a fourth straight month in October to a 16-month low, central bank data showed on Thursday. The producer price index stood 7.3% higher in October than the same month a year ago, according to the Bank of Korea (BoK), after a revised 7.9% rise in September. Producer inflation had hit a near 14-year high of 10.0% in June. On a monthly basis, however, the index rose 0.5%, picking up from a revised 0.1% in September and the fastest in four months. The monthly rise was led by utility prices for electricity, gas, water supply and waste, which jumped 8.1%.

South Korea's economic growth was fast losing momentum at latest measure as higher living costs erode household income and crimp demand, pressuring the Bank of Korea (BoK) to strike a balance between inflation and growth. All but one of 30 economists in the Nov. 15-21 poll forecast the BoK would raise its policy rate (KROCRT=ECI) by 25 basis points to 3.25% on Thursday. If the majority view prevails, the BoK will take rates to the highest level since 2012. "Amid climbing concerns about growth and the credit market, the case for hiking at a more gradual pace has strengthened further." Nearly 60% of respondents, 17 of 30, forecast another hike by 25 basis points by end-March, taking rates to 3.50%.

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