Latest news with #RheeChangyong
Bloomberg
3 days ago
- Business
- Bloomberg
BOK's Rhee Says US-China Trade Talks Important for Whole of Asia
Bank of Korea Governor Rhee Chang-yong said the outcome of trade negotiations between the US and China will have an impact for all of Asia's economies, highlighting their significance beyond the bilateral level. 'When we actually measure the impact of US tariffs on us, the indirect impact through China is very important because we are very much connected with them through supply chains,' Rhee said referring to South Korea at a BOK event in Seoul on Monday.
CNA
27-05-2025
- Business
- CNA
Bank of Korea to cut rate on May 29, more easing ahead: Reuters poll
BENGALURU : The Bank of Korea (BOK) will lower its key policy rate by 25 basis points on Thursday as economic activity contracted in the last quarter and benign inflation supports the case for easing, a Reuters poll of economists found. BOK Governor Rhee Chang-yong signalled the possibility of a rate cut at the April meeting, days before official data showed South Korea's economy contracted 0.2 per cent in the first quarter from the previous three months. With inflation at 2.1 per cent in April - close to the BOK's 2.0 per cent target - and the Korean won rebounding around 9 per cent from last month's low, the central bank has more space to resume its easing cycle. All 36 economists polled between May 19-25 expected the BOK to cut its base rate by 25 basis points to 2.50 per cent on May 29, a level last seen in August 2022. "At the April meeting, policymakers strongly suggested that there would be a rate cut and the near-term growth forecasts could be revised downwards," said Suktae Oh, chief Korea economist at Societe Generale. "Since then, we have not seen anything in the data that would be likely to deter them. Indeed, the Q1 GDP contraction, continued uncertainty on U.S. tariffs and the decline in the USD/KRW exchange rate further support monetary easing." Among those who provided a longer-term outlook on rates, a strong majority of economists, 23 of 27, expected the key interest rate to fall by 50 basis points from current level to 2.25 per cent by the end of next quarter, a view broadly unchanged from the previous poll. However, a slight majority, 15 of 27, or around 56 per cent, forecast an additional 25 basis point cut by the end of the fourth quarter, bringing the rate to 2.00 per cent, a quarter percentage point lower than in the previous poll conducted in April. Apart from monetary easing, economists in the poll also pointed to the likelihood of fiscal support following the presidential election in early June, on top of the 13.8 trillion won ($10.1 billion) supplementary government budget approved this month. "After lowering the (interest rate) to 2.00 per cent, we see the BOK prioritising financial stability while passing the baton for boosting growth to the government from next year," wrote Kathleen Oh, chief Korea economist at Morgan Stanley. The South Korean economy was expected to grow 1.3 per cent this year, a separate Reuters poll found, higher than the International Monetary Fund's forecast of 1.0 per cent and the BOK's projection of 1.5 per cent, which most economists said will be revised downward on Thursday.
Reuters
27-05-2025
- Business
- Reuters
Bank of Korea to cut rate on May 29, more easing ahead
BENGALURU, May 27 (Reuters) - The Bank of Korea (BOK) will lower its key policy rate by 25 basis points on Thursday as economic activity contracted in the last quarter and benign inflation supports the case for easing, a Reuters poll of economists found. BOK Governor Rhee Chang-yong signalled the possibility of a rate cut at the April meeting, days before official data showed South Korea's economy contracted 0.2% in the first quarter from the previous three months. With inflation at 2.1% in April - close to the BOK's 2.0% target - and the Korean won rebounding around 9% from last month's low, the central bank has more space to resume its easing cycle. All 36 economists polled between May 19-25 expected the BOK to cut its base rate (KROCRT=ECI), opens new tab by 25 basis points to 2.50% on May 29, a level last seen in August 2022. "At the April meeting, policymakers strongly suggested that there would be a rate cut and the near-term growth forecasts could be revised downwards," said Suktae Oh, chief Korea economist at Societe Generale. "Since then, we have not seen anything in the data that would be likely to deter them. Indeed, the Q1 GDP contraction, continued uncertainty on U.S. tariffs and the decline in the USD/KRW exchange rate further support monetary easing." Among those who provided a longer-term outlook on rates, a strong majority of economists, 23 of 27, expected the key interest rate to fall by 50 basis points from current level to 2.25% by the end of next quarter, a view broadly unchanged from the previous poll. However, a slight majority, 15 of 27, or around 56%, forecast an additional 25 basis point cut by the end of the fourth quarter, bringing the rate to 2.00%, a quarter percentage point lower than in the previous poll conducted in April. Apart from monetary easing, economists in the poll also pointed to the likelihood of fiscal support following the presidential election in early June, on top of the 13.8 trillion won ($10.1 billion) supplementary government budget approved this month. "After lowering the (interest rate) to 2.00%, we see the BOK prioritising financial stability while passing the baton for boosting growth to the government from next year," wrote Kathleen Oh, chief Korea economist at Morgan Stanley. The South Korean economy was expected to grow 1.3% this year, a separate Reuters poll found, higher than the International Monetary Fund's forecast of 1.0% and the BOK's projection of 1.5%, which most economists said will be revised downward on Thursday. (Other stories from the May Reuters global economic poll)
CNA
06-05-2025
- Business
- CNA
Bank of Korea chief says volatility in FX market to continue, Yonhap reports
SEOUL :South Korea's central bank chief said currency volatility will likely continue for some time amid uncertainties in the global economy and domestic politics, the Yonhap news agency reported on Tuesday. "It is still too early to say whether the currency exchange rate has hit the bottom," Bank of Korea Governor Rhee Chang-yong was quoted as saying, referring to the Korean won's value against the U.S. dollar. Rhee also said the BOK will likely have to cut the growth forecast and lower lending rates to boost the economy, according to the report. He made the remarks during a meeting with reporters accompanying him to the annual meeting of the Asian Development Bank in Milan on Monday. South Korea has been dealing with a leadership vacuum amid months of political turmoil which saw the Korean won weaken. Rhee said it was a "difficult week" for South Korea, the report said, referring to the current political situation one month before the snap presidential election on June 3. Former Prime Minister Han Duck-soo and former Finance Minister Choi Sang-mok resigned last week and Han entered the presidential race brought about by the ousting of former President Yoon Suk Yeol over his short-lived imposition of martial law in December. "It was a difficult week as we had to provide an explanation on the current situation in South Korea, which is seen as a developed country from the outside," Rhee said, according to the report. "It is the responsibility of those remaining in their positions to make every possible effort in the ongoing trade negotiations with the U.S. for the sake of the national interest," he added. South Korean and U.S. officials held their first round of trade talks in Washington last month as Seoul pushes to cut a deal that could curb the impact of U.S. tariffs on vital sectors like the auto industry.
Reuters
06-05-2025
- Business
- Reuters
Bank of Korea chief says volatility in FX market to continue, Yonhap reports
SEOUL, May 6 (Reuters) - South Korea's central bank chief said currency volatility will likely continue for some time amid uncertainties in the global economy and domestic politics, the Yonhap news agency reported on Tuesday. "It is still too early to say whether the currency exchange rate has hit the bottom," Bank of Korea Governor Rhee Chang-yong was quoted as saying, referring to the Korean won's value against the U.S. dollar. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. Rhee also said the BOK will likely have to cut the growth forecast and lower lending rates to boost the economy, according to the report. He made the remarks during a meeting with reporters accompanying him to the annual meeting of the Asian Development Bank in Milan on Monday. South Korea has been dealing with a leadership vacuum amid months of political turmoil which saw the Korean won weaken. Rhee said it was a "difficult week" for South Korea, the report said, referring to the current political situation one month before the snap presidential election on June 3. Former Prime Minister Han Duck-soo and former Finance Minister Choi Sang-mok resigned last week and Han entered the presidential race brought about by the ousting of former President Yoon Suk Yeol over his short-lived imposition of martial law in December. "It was a difficult week as we had to provide an explanation on the current situation in South Korea, which is seen as a developed country from the outside," Rhee said, according to the report. "It is the responsibility of those remaining in their positions to make every possible effort in the ongoing trade negotiations with the U.S. for the sake of the national interest," he added. South Korean and U.S. officials held their first round of trade talks in Washington last month as Seoul pushes to cut a deal that could curb the impact of U.S. tariffs on vital sectors like the auto industry.
