bank vows to do all it can to help economy
SEOUL (Reuters) South Korea central bank promised on Friday to keep canada goose coats its focus on lifting the Canada Goose Online economy in the face of a deepening global crisis, reinforcing market expectations it will cut interest rates again next month to another record low.
The Bank of canada goose clearance sale Korea governor also warned that Asia fourth largest economy could miss the bank 2 percent growth forecast this year, while reaffirming pledges to canada goose black friday sale step up cash injections in case of a severe credit crunch.
Financial buy canada goose jacket markets shrugged off the gloomy economic prospects, Canada Goose Outlet with the battered won currency gaining some support from separate central bank data showing a further improvement in the cheap canada goose uk country international balance of payments.
Bank of Korea will continue canada goose uk outlet to make its best efforts to canada goose factory sale help the local economy overcome uk canada goose outlet the current troubles, Governor Lee Seong tae said at a breakfast gathering of business executives and analysts. Lee added that the base rate will be adjusted depending on the canadian goose jacket economic and financial markets trends.
Analysts and investors expect the central bank to keep lowering its policy rate over coming months, after canada goose uk black friday more than halving it over the past four months to a Canada Goose Parka record low of 2.5 percent. It next reviews its base canada goose store rate on February 12.
The central bank 2 percent growth forecast Canada Goose sale would mark the slowest expansion since the Asian financial crisis 11 years ago.
The forecast was based on the assumption that the world economy will grow 1.9 percent this year. The International Monetary Fund, however, slashed its forecasts to predict world growth of only 0.5 percent, the slowest since the Second World War.
EXPORTS TO POST RECORD DROP Private economists canada goose uk shop are much more pessimistic with many predicting South Korea, which suffered its fastest contraction in nearly 11 years buy canada goose jacket cheap in the fourth quarter, would slide into recession this year and shrink by as much Canada Goose online as 3 percent this year.
Analysts Canada Goose Jackets also expect January trade and price data due on Monday to show canada goose a further cooling in global canada goose coats on sale demand for South Korean products Canada Goose Coats On Sale and a further decline in inflation, paving the way for another interest rate cut.
Exports have probably fallen by a record 28.1 percent from a year earlier canadagooseoutlet4online in January and the annual rate of consumer inflation is seen easing to a 10 month low of 3.9 percent in January, Reuters surveys showed. KR POLL ECI
Despite the gathering gloom, central bank data released before markets opened showed canada goose clearance South Korea international balance of payments further improved in December due to falling global commodities prices and slackening imports.
The current account was in surplus for a third consecutive month at $0.86 billion in December and the capital account deficit narrowed to $4.83 billion from a $12.14 billion loss, both without adjustment for seasonal patterns.
But for all of 2008, the current account swung to its first annual deficit in 11 years of $6.41 billion cheap Canada Goose as record high commodities uk canada goose prices earlier last year inflated import bills. The central bank expects the women canada goose balance to return to a surplus this year.
The won fell 0.3 percent on the day to 1,382.5 per dollar by 0233 GMT.
The won had slumped around 40 percent in the first 11 months of last year to hit its weakest level in 11 years against the dollar, but has since recovered by about 10 percent on the back of easing concerns about the balance of payments.