SEOUL, Dec 8 (Reuters) - South Korea's central bank looks certain to keep interest rates steady on Thursday for a tenth consecutive month and is likely to signal steady rates for the time being due to fragile global demand and lingering credit woes.
In a Reuters poll on Tuesday all 13 analysts surveyed agreed that the Bank of Korea (BOK) would keep the base rate steady at a record low of 2.0 percent on Thursday, with a majority of them expecting rates to start rising in the second quarter or later in the year.
Following are key comments that South Korean officials have made on the country's economy and monetary policy since the BOK's previous interest rate meeting on Nov. 12:
FINANCIAL SERVICES COMMISSION CHAIRMAN CHIN DONG-SOO, at a seminar on Dec. 3:
'The government's stance is to maintain its policy trend for a while as the current situation is unlikely to change by the first half of next year.'
BANK OF KOREA DEPUTY GOVERNOR KIM JAE-CHUN, in a seminar on Dec. 1:
'Since the global economy is unlikely to post a strong recovery, policy efforts by the government and central bank are needed.'
PRESIDENT LEE MYUNG-BAK, in a televised town hall meeting on Nov. 27:
'(International agencies) are predicting about 4.5 percent growth (in 2010) but I think they will upgrade the projections toward the end of the year...I think we will see growth of around 5 percent.'
BANK OF KOREA, in a statement to announce its decision to widen the inflation target band to 2-4 percent on Nov. 26:
'There is a possibility that inflation environments over the 2010-2012 period will be significantly different from the period before the gloal financial crisis.'
BANK OF KOREA, in its financial stability report on Nov. 19:
'In view of the ample market liquidity and expectations for a rising trend in housing prices, upward pressures on housing prices are seen continuing.'
FINANCE MINISTER YOON JEUNG-HYUN, to reporters before a meeting with local economists on Nov. 19:
'Our economy is in better shape than expected. International bodies are seeing faster growth and next year the economy is expected to grow faster than the government's forecast of 4 percent.'
BANK OF KOREA DEPUTY GOVERNOR KIM JAE-CHUN, at a local forum on Nov. 17:
'There are worries that a rate hike without enough growth momentum in the private sector may deteriorate the recent economic growth.'
PRESIDENT LEE MYUNG-BAK, in an interview with a Singaporean newspaper on Nov. 13:
'The Korean economy is recovering to the point where it will likely register positive growth for the entire year.'
(Reporting by Seo Eun-kyung; Editing by )
((eunkyung.seo@thomsonreuters.com; +82 2 3704 5648; Reuters Messaging;eunkyung.seo.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In a Reuters poll on Tuesday all 13 analysts surveyed agreed that the Bank of Korea (BOK) would keep the base rate steady at a record low of 2.0 percent on Thursday, with a majority of them expecting rates to start rising in the second quarter or later in the year.
Following are key comments that South Korean officials have made on the country's economy and monetary policy since the BOK's previous interest rate meeting on Nov. 12:
FINANCIAL SERVICES COMMISSION CHAIRMAN CHIN DONG-SOO, at a seminar on Dec. 3:
'The government's stance is to maintain its policy trend for a while as the current situation is unlikely to change by the first half of next year.'
BANK OF KOREA DEPUTY GOVERNOR KIM JAE-CHUN, in a seminar on Dec. 1:
'Since the global economy is unlikely to post a strong recovery, policy efforts by the government and central bank are needed.'
PRESIDENT LEE MYUNG-BAK, in a televised town hall meeting on Nov. 27:
'(International agencies) are predicting about 4.5 percent growth (in 2010) but I think they will upgrade the projections toward the end of the year...I think we will see growth of around 5 percent.'
BANK OF KOREA, in a statement to announce its decision to widen the inflation target band to 2-4 percent on Nov. 26:
'There is a possibility that inflation environments over the 2010-2012 period will be significantly different from the period before the gloal financial crisis.'
BANK OF KOREA, in its financial stability report on Nov. 19:
'In view of the ample market liquidity and expectations for a rising trend in housing prices, upward pressures on housing prices are seen continuing.'
FINANCE MINISTER YOON JEUNG-HYUN, to reporters before a meeting with local economists on Nov. 19:
'Our economy is in better shape than expected. International bodies are seeing faster growth and next year the economy is expected to grow faster than the government's forecast of 4 percent.'
BANK OF KOREA DEPUTY GOVERNOR KIM JAE-CHUN, at a local forum on Nov. 17:
'There are worries that a rate hike without enough growth momentum in the private sector may deteriorate the recent economic growth.'
PRESIDENT LEE MYUNG-BAK, in an interview with a Singaporean newspaper on Nov. 13:
'The Korean economy is recovering to the point where it will likely register positive growth for the entire year.'
(Reporting by Seo Eun-kyung; Editing by )
((eunkyung.seo@thomsonreuters.com; +82 2 3704 5648; Reuters Messaging;eunkyung.seo.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.