S. Korea's c.bank to reduce rate-setting meetings from 12 to 8 from 2017

Bank of Korea (BOK), South Korea's central bank, said Thursday that it will reduce the number of its annual rate-setting meetings from the current 12 to eight from 2017.

The BOK said in a statement that the reduction will enhance the effectiveness of monetary policy. Instead of lower rate-setting meetings, monetary policymakers will meet four times a year to discuss financial stability.

The reduction was in line with a global trend. The U.S. Federal Reserve holds eight rate-setting meetings per year, and the European Central Bank (ECB) reduced the number to eight from this year. The Bank of Japan also decided to lower it from 14 to eight from next year.

Meanwhile, the bank said in its monetary policy direction for next year that it will keep an accommodative policy stance in 2016 to boost economic growth.

The BOK lowered its benchmark interest rate by 25 basis points in March and June each to an all-time low of 1.5 percent.

The bank said that private consumption is expected to improve next year and that the exports slump will be less severe.

The BOK, however, noted that uncertainties at home and abroad will remain next year, citing possible foreign fund outflow caused by the Fed's rate hike, fast rise in household debts and the worsened business operations of some big corporations. Endit