이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
BOK keeps base rate steady at 1.25% in Oct, cuts ‘16 growth forecast to 2.8%
- Collected
- 2016.10.13
- Distributed
- 2016.10.14
- Source
- Go Direct
It also downgraded its forecast for next year’s economy to 2.8 percent from earlier 2.9 percent amid worsening prospects in the external front as well as prolonged sluggishness in domestic demand.
Higher interest rates in the U.S. and heavy load of household debt put the central bank in a policy bind even it has been pressured by the government and others to do more to stimulate the export-dependent economy faced with deteriorating external conditions due to setbacks in mainstream smartphone, automobile, shipbuilding, and shipping industries.
The rise in household debt remained unfazed by a series of government regulations and measures. Household credit balance including credit card use surged 54 trillion won ($47.8 billion) in the first half of this year to reach 1,257.3 trillion won by late June. Household loans extended by banks rose 6.3 trillion won in July, 8.6 trillion won in August and 6.1 trillion won in September.
Interest cost on the colossal debt pile could further weigh on consumers and prevent them from spending if U.S. interest rates are raised within the year. If household debt begins to sour, the banking and other financial sector could be hard hit.
The Bank of Korea kept its estimate for this year’s growth unchanged at 2.7 percent and inflation target at 1.0 percent, 0.1 percentage point lower from previous projection.
By Lee Sang-duk
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]