Bank of Korea 28 base rate decision, exports 1 trillion-dollar target and rate burden
The Bank of Korea 28 will decide on the base rate. Amid a semiconductor boom, the growth forecast is being considered for an upward revision to 2.5–2.6%, while rising US long-term interest rates and higher fixed mortgage rates at home are increasing households’ interest burdens.
The Hyundai Research Institute said that, to reach annual exports of 1 trillion dollars, South Korea needs to expand exports of consumer goods such as K-beauty and K-food, moving away from a structure centered on semiconductors. The institute analyzed that diversifying consumer goods is key to stabilizing the export structure.
The Bank of Korea 28 is considering raising its forecast for this year's real gross domestic product growth in its revised economic outlook to be released on 2.0% from 2.5–2.6%. The institution cited an improvement in the semiconductor industry outlook as the reason for the upward revision.
The Bank of Korea's Monetary Policy Board is likely to keep the base rate at the current annual 2.50%. The key point to watch is how the board signals the future path of interest rates.
In the United States, 30-year Treasury yield 5.2came close to the % level, reaching nearly 20the highest level in years. Rising long-term interest rates are affecting global interest rate expectations.
The lowest fixed rates on mortgage loans at major domestic commercial banks 5exceeded %. This level is the 3highest in 7months.
The Bank of Korea will decide its base rate next week. The Monetary Policy Committee will 28announce revised economic projections at its meeting.
Sources: 연합뉴스 경제
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