The Bank of Korea kept its benchmark rate unchanged for a 3rd consecutive month today:
Statement from the Bank of Korea, main points:
- Economic growth to remain weak for some time
- Inflation will
likely fall considerably before rebounding slightly for rest of year - Pace of decline in
housing prices slowed - Uncertainty high
over Chinese economy, IT sector
Meanwhile, in Singapore, the economy contracted q/q, raising the risk of a recession:
A private sector economist in Singapore remarked on the data:
- “The return of China tourists is more a trickle than a flood so far,”
- “We are less optimistic and see the economy stagnating rather than rebounding in the coming quarters.”
Just noting the common concerns over China’s economic bounce. Slow growth there will have implications beyond SK and Singapore.