Korea keeps base rate unchanged at 2.5% as inflation ticks up in May

By Susanna Moon

Chicago, June 12 – The Bank of Korea’s monetary policy committee decided to leave the base rate unchanged at 2.5% for the intermeeting period at its meeting on Thursday.

Consumer price inflation rose to 1.7% in May from 1.5% the previous month, due mainly to the narrowing of the extents of decline in agricultural and petroleum product prices, according to a bank notice.

Core inflation excluding the prices of agricultural and petroleum products fell slightly, to 2.2% from 2.3%.

The committee said it forecasts that inflation will gradually rise but remain low for the time being.

Meanwhile, the trend of economic recovery in the United States has been sustained and the sluggishness in the euro region has continued to ease, the bank said.

Also, economic growth trends in some emerging market countries have weakened, the bank noted.

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