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- South Korean Central Bank Rate Hike Asia Speed Tighten up Pace
South Korean Central Bank Rate Hike Asia Speed Tighten up Pace
- By Frbiz Tian
- Published 01/21/2012
- Business Management
- Unrated
Frbiz Tian
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Start the second round of the Fed quantitative easing monetary policy, is to give Asian central banks monetary policy to bring greater challenges.
Yesterday, the South Korean central bank announced its benchmark interest rate by 25 basis points to 2.5% for the second year to raise interest rates to help curb the economic recovery has been an accumulation of inflationary pressures. As for the other central banks in the region, the liquidity and inflationary pressures will lead not only to accelerate the tightening of its monetary policy, may also bring "capital controls" increase the risk.
South Korean central bank to raise interest rates, "brace"
Bank of Korea raised interest rates by 25 basis points on Tuesday to 2.5%, in line with previous expectations, the bank said that future monetary policy will be based on maintaining price stability and moderate economic growth in the premise. Bank of Korea in July this year, the benchmark rate from 2% upwards to 2.25%.
The rise in agricultural prices to push inflation higher, given the price of vegetables will be stable and expected future inflation will fall to some extent, but the high pressures still exist, mainly due to brisk economic activities as well as international raw material prices .
South Korea October consumer price index (CPI) and producer price index (PPI) increased both hit two-year high, CPI increase is 2% to break the central bank's target range of 4% to 4.1% cap, the consumer price is not increased emotional stability, the central bank to raise interest rates to make the decision second.
Last week the Bank of Korea Governor Jin Zhongxiu public expects inflation in the country this year and next year will increase by 3%, respectively, and 3.4%.
South Korean central bank interest rate cycle has clearly Mairu Jia, with the end of the financial crisis, monetary policy is gradually "normalized."
It should be noted that since June of this year, the cumulative won-dollar exchange rate has been rising about 8%, the biggest gain in Asian regional currencies. Nomura Securities
analyst in a recent report pointed out that high inflation may have eased, the central bank's estimates, according to South Korea, the won exchange rate rose 1% each, will affect the inflation rate of about 0.25 percentage points.
Asian central banks re-Lin Kao
Higher than expected compared to 6000 the Fed started billion in debt acquisition and indecisive European Central Bank's wait and see the two, more Asian central banks face is how to control liquidity and curb the proliferation of high inflation, which may lead to more aggressive monetary policy.
South Korean central bank to raise interest rates again following the Asia-Pacific region camp. Earlier, Australia, India and China have been hands-on interest rates. Among them, Australia's central bank unexpectedly raising interest rates by 25 basis points this month to 4.75%, India's central bank will repurchase rate and reverse repo rate by 25 basis points respectively to 6.25% and 5.25%, the People's Bank of China has raised interest rates unexpectedly .
Royal Bank of Canada in Hong Kong by senior emerging markets strategist Brian Jackson as saying, Asian central bankers have been the main focus of economic growth and external demand from the shift to inflation pressures, tighter monetary policy in Asia is likely to accelerate the pace.
In other analysts view, one of the risks in the Asian region is also the "capital control" concerns about the increase. HSBC has recently released a research report also noted that the United States and Europe pursued loose monetary policy may lead to quantitative tightening keen on emerging markets, specific performance, compared with capital controls.
BBVA to emerging markets analyst told reporters that the South Korean government has said they may take new initiatives to curb capital inflows. South Korean interest rate measures for the major concern is the continued strength of global economic concerns and the recent strong capital inflows and currency appreciation against the resistance.
South Korea to introduce new measures of capital account is increased risk, possible measures include increasing the foreign exchange positions of banks control efforts to limit short-term borrowings, and withholding tax.
Yesterday, the South Korean central bank announced its benchmark interest rate by 25 basis points to 2.5% for the second year to raise interest rates to help curb the economic recovery has been an accumulation of inflationary pressures. As for the other central banks in the region, the liquidity and inflationary pressures will lead not only to accelerate the tightening of its monetary policy, may also bring "capital controls" increase the risk.
South Korean central bank to raise interest rates, "brace"
Bank of Korea raised interest rates by 25 basis points on Tuesday to 2.5%, in line with previous expectations, the bank said that future monetary policy will be based on maintaining price stability and moderate economic growth in the premise. Bank of Korea in July this year, the benchmark rate from 2% upwards to 2.25%.
The rise in agricultural prices to push inflation higher, given the price of vegetables will be stable and expected future inflation will fall to some extent, but the high pressures still exist, mainly due to brisk economic activities as well as international raw material prices .
South Korea October consumer price index (CPI) and producer price index (PPI) increased both hit two-year high, CPI increase is 2% to break the central bank's target range of 4% to 4.1% cap, the consumer price is not increased emotional stability, the central bank to raise interest rates to make the decision second.
Last week the Bank of Korea Governor Jin Zhongxiu public expects inflation in the country this year and next year will increase by 3%, respectively, and 3.4%.
South Korean central bank interest rate cycle has clearly Mairu Jia, with the end of the financial crisis, monetary policy is gradually "normalized."
It should be noted that since June of this year, the cumulative won-dollar exchange rate has been rising about 8%, the biggest gain in Asian regional currencies. Nomura Securities
Asian central banks re-Lin Kao
Higher than expected compared to 6000 the Fed started billion in debt acquisition and indecisive European Central Bank's wait and see the two, more Asian central banks face is how to control liquidity and curb the proliferation of high inflation, which may lead to more aggressive monetary policy.
South Korean central bank to raise interest rates again following the Asia-Pacific region camp. Earlier, Australia, India and China have been hands-on interest rates. Among them, Australia's central bank unexpectedly raising interest rates by 25 basis points this month to 4.75%, India's central bank will repurchase rate and reverse repo rate by 25 basis points respectively to 6.25% and 5.25%, the People's Bank of China has raised interest rates unexpectedly .
Royal Bank of Canada in Hong Kong by senior emerging markets strategist Brian Jackson as saying, Asian central bankers have been the main focus of economic growth and external demand from the shift to inflation pressures, tighter monetary policy in Asia is likely to accelerate the pace.
In other analysts view, one of the risks in the Asian region is also the "capital control" concerns about the increase. HSBC has recently released a research report also noted that the United States and Europe pursued loose monetary policy may lead to quantitative tightening keen on emerging markets, specific performance, compared with capital controls.
BBVA to emerging markets analyst told reporters that the South Korean government has said they may take new initiatives to curb capital inflows. South Korean interest rate measures for the major concern is the continued strength of global economic concerns and the recent strong capital inflows and currency appreciation against the resistance.
South Korea to introduce new measures of capital account is increased risk, possible measures include increasing the foreign exchange positions of banks control efforts to limit short-term borrowings, and withholding tax.
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