Bank of Korea expectedly keeps rates steady at an almost three-year low

Bank of Korea expectedly keeps rates steady at an almost three-year low


This photo taken on Nov. 24, 2022 shows the building of Bank of Korea BOK in Seoul, South Korea. South Korea’s central bank on Thursday raised its policy rate to curb inflation, delivering six back-to-back rate hikes for the first time. (Photo by Wang Yiliang/Xinhua via Getty Images)

Wang Yiliang | Xinhua News Agency | Getty Images

South Korea’s central bank held its policy rate at 2.5%, keeping it steady at an almost three-year low.

South Korea’s economy contracted by 0.2% quarter on quarter in the first three months of this year due to weak construction activity and softening export growth, while it remained flat on an year on year basis.

Goldman Sachs in a note last week said that introduction of new mortgage lending restrictions would “open the door” for a rate cut in August.

Stock Chart IconStock chart icon

hide content

Housing prices in Seoul spiked over 19% in June on an annualized basis, according to Goldman, prompting financial authorities to step in with measures to address rapidly expanding household loans.

The firm said that recent housing market developments had heightened the BOK’s concerns about financial stability, noting that household loan growth surged to 6 trillion won ($4.27 billion) in May — the fastest pace since last October — and is estimated to have reached 7 trillion won in June.

South Korea’s Kospi was up 0.74%, while the won strengthened marginally to trade at 1,372.48 against the dollar.

The country could face more economic headwinds as U.S. President Donald Trump has threatened to impose 25% tariffs on all South Korean imports starting Aug. 1 if the country fails to reach a trade deal with Washington.



Source

Startups love the UK. Its IPO market? Not so much
World

Startups love the UK. Its IPO market? Not so much

London’s Old Street roundabout, home to many tech firms and sometimes dubbed “Silicon Roundabout.” Chris Ratcliffe | Bloomberg | Getty Images U.K. capital markets are at a crossroads. The country’s startups raised $8 billion in the first six months of the year, according to a report from Dealroom and HSBC Innovation Banking — more than […]

Read More
CNBC’s Inside India newsletter: The price of FOMO — India’s options market faces a reality check
World

CNBC’s Inside India newsletter: The price of FOMO — India’s options market faces a reality check

Hi, I’m Spriha Srivastava, executive editor for digital at CNBC International. Welcome to this edition of Inside India.  This week, I look at how the boom in India’s derivatives markets has brought a whole host of worries for retail investors, who are typically young and drawn in by the promise of quick profits. Mumbai, India: […]

Read More
European stocks open higher, brushing off tariff updates; WPP names Microsoft exec Cindy Rose as new CEO
World

European stocks open higher, brushing off tariff updates; WPP names Microsoft exec Cindy Rose as new CEO

Join CNBC for live updates on European markets. Source

Read More