Latest news with #BOK
The Sun
a day ago
- Politics
- The Sun
MACC, AFP boost bilateral ties to combat cross-border corruption, crime
KUALA LUMPUR: Cooperation among international law enforcement agencies is crucial in facing the increasingly complex challenges of modern crime, said Malaysian Anti-Corruption Commission (MACC) Special Operations Division (BOK) director Datuk Zamri Zainuddin. He conveyed this during a meeting with Australian Federal Police (AFP) representative Nick Morgan at the MACC headquarters here today. In a statement, the MACC said the meeting was part of ongoing efforts to strengthen bilateral ties between Malaysia and Australia in combating corruption and cross-border crime. 'This meeting demonstrates the joint commitment of the MACC and AFP to strengthen international cooperation networks to more effectively combat corruption and financial crimes, thereby ensuring the security and integrity of both nations. 'During the discussion, both parties shared important information and exchanged views on strategies and best practices in investigating corruption, money laundering, and international financial crimes,' the statement read. The MACC said that as part of the discussions, BOK also requested AFP's assistance in tracking down a suspect under a Red Notice who is currently under investigation by the division. 'The AFP has expressed its commitment to providing assistance through bilateral cooperation between the agencies to locate and extradite the suspect to Malaysia for prosecution under the applicable laws,' it said.
The Sun
a day ago
- Politics
- The Sun
MACC, AFP strengthen ties to fight cross-border corruption
KUALA LUMPUR: Cooperation among international law enforcement agencies is crucial in facing the increasingly complex challenges of modern crime, said Malaysian Anti-Corruption Commission (MACC) Special Operations Division (BOK) director Datuk Zamri Zainuddin. He conveyed this during a meeting with Australian Federal Police (AFP) representative Nick Morgan at the MACC headquarters here today. In a statement, the MACC said the meeting was part of ongoing efforts to strengthen bilateral ties between Malaysia and Australia in combating corruption and cross-border crime. 'This meeting demonstrates the joint commitment of the MACC and AFP to strengthen international cooperation networks to more effectively combat corruption and financial crimes, thereby ensuring the security and integrity of both nations. 'During the discussion, both parties shared important information and exchanged views on strategies and best practices in investigating corruption, money laundering, and international financial crimes,' the statement read. The MACC said that as part of the discussions, BOK also requested AFP's assistance in tracking down a suspect under a Red Notice who is currently under investigation by the division. 'The AFP has expressed its commitment to providing assistance through bilateral cooperation between the agencies to locate and extradite the suspect to Malaysia for prosecution under the applicable laws,' it said.
Korea Herald
2 days ago
- Business
- Korea Herald
BOK slashes growth forecast by half to 0.8%
Korea faces slowest growth since 2009 as central bank cuts rates to spur recovery South Korea's central bank nearly halved its economic growth projection for this year to 0.8 percent on Thursday, reflecting deepening challenges both at home and abroad. In a bid to support the struggling economy, the Bank of Korea also delivered a quarter-point base rate cut. The revised estimate for gross domestic product growth, a key measure of economic performance, is down 0.7 percentage point from the BOK's previous forecast of 1.5 percent made in February. The downgrade factors in the 0.2 percent economic contraction in the first quarter and heightened trade risks, including US tariff actions. If realized, this would mark the first time since 2009 that the nation's growth rate falls below 2 percent, excluding the pandemic-triggered contraction in 2020. The last instance was when the GDP rose by 0.8 percent in 2009, hit by the global financial crisis. 'The economy is facing challenges, but it's difficult to compare the current situation to that of 2008,' BOK Governor Rhee Chang-yong said at a press conference following the Monetary Policy Board meeting. 'At that time, Korea's potential growth rate was around 3 percent. Now, it has fallen to 2 percent. A 0.8 percent growth is certainly painful, but it's not a crisis on the scale of 2008.' The BOK's revised projection aligns with recent adjustments from other institutions. The Korea Development Institute, for instance, also halved its growth outlook from 1.6 percent to 0.8 percent. Despite the downgrade for 2025, the BOK trimmed next year's growth forecast by just 0.2 percentage point to 1.6 percent, suggesting an anticipated recovery. 'Over the past two years, construction investment has been the biggest drag on growth,' said Rhee. 'The sector had overheated during the real estate boom and is now undergoing a sharp correction, which we expect to stabilize within this year.' The BOK maintained its inflation outlook for 2025 at 1.9 percent, signaling that consumer prices are expected to follow a stable trajectory despite slower growth. To stimulate economic activity, the central bank lowered the base rate by 0.25 percentage point to 2.5 percent. This marks the fourth rate cut since the BOK began easing in October 2024. All six voting members of the Monetary Policy Board supported the rate cut, excluding Governor Rhee, whose vote is not disclosed. Four of the six members were open to further easing within the next three months, while the remaining two expressed opposition. With the latest decision, the interest rate gap between South Korea and the US has widened to 2 percentage points. However, the recent appreciation of the Korean won has helped mitigate concerns over capital outflows and foreign exchange volatility. 'The won's earlier depreciation was excessive compared to the underlying fundamentals of the Korean economy. Its current appreciation is a normalization process,' said Rhee. Attention now turns to the US Federal Reserve's upcoming Federal Open Market Committee meeting scheduled for June 17-18. The next BOK rate-setting meeting will be held on July 10.
Reuters
2 days ago
- Business
- Reuters
South Korea delivers dovish cut ahead of snap election
SEOUL, May 29 (Reuters) - South Korea's central bank cut interest rates for a fourth time in its current easing cycle on Thursday to support an economic recovery clouded by U.S. tariffs, just days ahead of a presidential election in Asia's fourth-largest economy. The Bank of Korea lowered its benchmark interest rate (KROCRT=ECI), opens new tab to 2.50%, as expected, and almost halved this year's economic outlook to 0.8% on Thursday. That suggests more scope for further easing just as presidential candidates from both major political parties promise bigger fiscal stimulus packages to counter a slowdown. "We of course have downside risks from (U.S.) tariff policy depending on how that goes, which raises the likelihood of further exports deterioration," Governor Rhee Chang-yong said in a news conference. While Rhee acknowledged the possibility that the trade outlook may improve, pointing to a U.S. court's decision to block Donald Trump's tariffs on Wednesday, the BOK remained primed for more support for the economy. Four of the BOK's seven board members said the door for further rate cuts should remain open for the next three months, Rhee said. The broadly dovish outlook pushed June futures on three-year treasury bonds higher. Having taken a relatively shorter period of time to rein in inflation, South Korea's monetary policy is set to be more accommodative by the end of this year than those of the U.S. or Australia and broadly on a par with Canada's and New Zealand's. Analysts see two more rate cuts by the end of this year to 2.00% in South Korea. As one of the world's most export-reliant economies, South Korea is heavily exposed to global trade and is likely to see more fallout from uncertainty caused by Trump's tariffs. Thursday's rate decision comes less than a week before South Korea votes for a new president, ending half a year of political limbo after ousted President Yoon Suk Yeol's failed martial law bid in December. Lower interest rates will be welcomed by the two main candidates, liberal frontrunner Lee Jae-myung and right-winger Kim Moon-soo. Both have pledged immediate spending to restore growth hurt by the enduring uncertainty caused by the Dec. 3 martial law decree. Data showing inflation close to the bank's 2% target and a weaker outlook for domestic activity have both supported arguments for further BOK easing. "It was indeed dovish as (Rhee) pointed to further cuts," said Kong Dong-rak, economist at Daishin Securities, who sees the policy rate reaching 2.25% by the end of this year. "But given that extra budgets are likely and the upside risks to growth, we can't be certain about going as low as 2.0%." South Korea's economy unexpectedly shrank in the first quarter as exports and consumption stalled amid fears over the impact of Washington's aggressive tariffs.
CNA
2 days ago
- Business
- CNA
South Korea delivers dovish cut ahead of snap election
SEOUL :South Korea's central bank cut interest rates for a fourth time in its current easing cycle on Thursday to support an economic recovery clouded by U.S. tariffs, just days ahead of a presidential election in Asia's fourth-largest economy. The Bank of Korea lowered its benchmark interest rate to 2.50 per cent, as expected, and almost halved this year's economic outlook to 0.8 per cent on Thursday. That suggests more scope for further easing just as presidential candidates from both major political parties promise bigger fiscal stimulus packages to counter a slowdown. "We of course have downside risks from (U.S.) tariff policy depending on how that goes, which raises the likelihood of further exports deterioration," Governor Rhee Chang-yong said in a news conference. While Rhee acknowledged the possibility that the trade outlook may improve, pointing to a U.S. court's decision to block Donald Trump's tariffs on Wednesday, the BOK remained primed for more support for the economy. Four of the BOK's seven board members said the door for further rate cuts should remain open for the next three months, Rhee said. The broadly dovish outlook pushed June futures on three-year treasury bonds higher. Having taken a relatively shorter period of time to rein in inflation, South Korea's monetary policy is set to be more accommodative by the end of this year than those of the U.S. or Australia and broadly on a par with Canada's and New Zealand's. Analysts see two more rate cuts by the end of this year to 2.00 per cent in South Korea. As one of the world's most export-reliant economies, South Korea is heavily exposed to global trade and is likely to see more fallout from uncertainty caused by Trump's tariffs. Thursday's rate decision comes less than a week before South Korea votes for a new president, ending half a year of political limbo after ousted President Yoon Suk Yeol's failed martial law bid in December. Lower interest rates will be welcomed by the two main candidates, liberal frontrunner Lee Jae-myung and right-winger Kim Moon-soo. Both have pledged immediate spending to restore growth hurt by the enduring uncertainty caused by the Dec. 3 martial law decree. Data showing inflation close to the bank's 2 per cent target and a weaker outlook for domestic activity have both supported arguments for further BOK easing. "It was indeed dovish as (Rhee) pointed to further cuts," said Kong Dong-rak, economist at Daishin Securities, who sees the policy rate reaching 2.25 per cent by the end of this year. "But given that extra budgets are likely and the upside risks to growth, we can't be certain about going as low as 2.0 per cent." South Korea's economy unexpectedly shrank in the first quarter as exports and consumption stalled amid fears over the impact of Washington's aggressive tariffs.
