South Korea’s central bank left its key interest rate at a record low for the ninth straight month yesterday, pledging to maintain low borrowing rates to help extend a recovery in Asia’s fourth-largest economy.
The Bank of Korea decision to keep the benchmark seven-day repurchase rate at 2 percent came at a monthly policy meeting and was in line with expectations.
The bank’s monetary policy committee said in a statement that it would stick to its “accommodative policy stance for the time being with an emphasis on sustaining the recovery of economic activity.”
The wording was broadly similar to last month’s statement.
South Korea’s economic recovery, rising housing prices and the decision last month by Australia’s central bank to lift rates had created expectations the Bank of Korea might raise its rate last month.
However, the bank at the time largely doused speculation an increase would come before the end of the year by offering no fundamental change in wording in its policy statement.
Goldman Sachs’ economist Kwon Goohoon said in a report yesterday that a rate hike would probably come in the first three months of next year and any increases are “likely to be gradual and moderate.”
The central bank slashed the rate six times since more than a year ago to help battle the effects of the global financial crisis.
South Korea has recorded three straight quarters of growth since contracting 5.1 percent in the final three months of last year. It grew 2.9 percent in the third quarter ended Sept. 30, the strongest quarterly performance in more than seven years.
Meanwhile, Beijing will yesterday, despite mounting evidence the world’s third largest economy has rebounded strongly from the global crisis.
“China’s economic recovery trend has continued to consolidate but it still faces a few difficulties and problems,” Wen told a forum in Beijing on the 2010 World Expo in Shanghai.
“We will continue to implement the active fiscal policy and moderately loose monetary policy ... to facilitate the fast and steady growth of the Chinese economy,” he said, according to a transcript of his speech posted on the Shanghai Expo’s Web site.
The Central Weather Administration (CWA) yesterday said it expected to issue a sea warning for Typhoon Fung-Wong tomorrow, which it said would possibly make landfall near central Taiwan. As of 2am yesterday, Fung-Wong was about 1,760km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, moving west-northwest at 26kph. It is forecast to reach Luzon in the northern Philippines by tomorrow, the CWA said. After entering the South China Sea, Typhoon Fung-Wong is likely to turn northward toward Taiwan, CWA forecaster Chang Chun-yao (張峻堯) said, adding that it would likely make landfall near central Taiwan. The CWA expects to issue a land
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
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