The BOK is forecast to keep the base rate frozen… Pay attention to the growth rate forecast

After lowering the benchmark interest rate to an all-time low of 0.5% in May of last year, the Bank of Korea, which has tied interest rates, is expected to continue its freezing trend.

According to the financial sector on the 21st, the BOK is expected to freeze the standard interest rate at the current 0.5% per annum at the Monetary Policy Direction Decision Meeting held by the Financial Monetary Commission (Monetary Commission) on the 25th.

It is analyzed that it is not easy to change the monetary policy stance as the real economy has slowed due to a contraction in domestic demand, such as a rise in real estate and stock prices amid ultra-low interest rates and a contraction in consumption due to the re-proliferation of Corona 19.

The BOK has previously frozen the base rate four times since July of last year and also in January of this year, but there is no other choice than the sixth’freeze’.

Along with the decision on the standard interest rate, interest is also drawing on the BOK’s economic outlook. In November last year, the BOK presented an estimate of the growth rate of this year’s gross domestic product (GDP) at 3.0%, drawing attention to whether or not to adjust the growth rate forecast again. Although economic uncertainty has increased due to the re-proliferation of Corona 19 and measures to strengthen social distancing, opinions are gathered that it is not enough to lower the growth rate immediately.

Major overseas organizations predict that the Korean economy will achieve a growth rate of around 3% this year. The International Monetary Fund (IMF) adjusted its Korean growth forecast last month from 2.9% to 3.1%. The Asian Development Bank (ADB) presented its growth rate forecast for December last year at 3.3%. The government’s forecast for this year’s growth rate is 3.2%.

The discussion on the 4th disaster subsidy will come to an end. As the party government agreed to the payment in March, it is highly likely that an additional draft will be submitted to the National Assembly in early March. The core of the 4th disaster support fund is to provide wider and thicker support to small business owners who have accumulated damage from the third spread of Corona 19.