Bloomberg News

S. Korea to Decide Rates, Release Revised GDP Data: Week Ahead

June 05, 2011

June 6 (Bloomberg) -- The Bank of Korea will meet on June 10 to decide interest rates as policy makers try to tame inflation without damping an economic recovery.

South Korea’s inflation climbed 4.1 percent from a year earlier in May, exceeding the central bank’s target for a fifth straight month and adding to the case for an increase in interest rates even as export and output growth cools. Exports last month advanced 23.5 percent, less than estimated.

Bank of Korea Governor Kim Choong Soo and his policy board kept rates unchanged at 3 percent at their last meeting on May 13 after increases in January and March. Government-run think tank Korea Development Institute on May 22 urged the central bank to raise interest rates more aggressively to tackle inflation.

The central bank will release revisions to the first- quarter gross domestic product numbers on June 8. Gross domestic product rose 1.4 percent in the January-March period after advancing 0.5 percent in the previous quarter, the Bank of Korea said on April 27.

South Korea’s benchmark Kospi Index rose 0.6 percent last week. The won gained 0.2 percent last week, a third weekly advance, according to data compiled by Bloomberg. The yield on the 3 percent note due December 2013 dropped three basis points, or 0.03 percentage point, to 3.57 percent last week, according to prices from Korea Exchange Inc.

The nation’s financial markets are closed today for a national holiday.

The following is a list of major events in South Korea this week:

--Editors: Jim McDonald

To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus