Most Popular
-
1
Dongduk Women’s University halts coeducation talks
-
2
Defense ministry denies special treatment for BTS’ V amid phone use allegations
-
3
Russia sent 'anti-air' missiles to Pyongyang, Yoon's aide says
-
4
OpenAI in talks with Samsung to power AI features, report says
-
5
Two jailed for forcing disabled teens into prostitution
-
6
South Korean military plans to launch new division for future warfare
-
7
Gold bars and cash bundles; authorities confiscate millions from tax dodgers
-
8
Kia EV9 GT marks world debut at LA Motor Show
-
9
Teen smoking, drinking decline, while mental health, dietary habits worsen
-
10
Trump picks ex-N. Korea policy official as his principal deputy national security adviser
Foreign investment banks forecast inflation in South Korea to stay low next year amid tepid domestic demand and falling global oil prices, a report showed Tuesday.
Nomura projected that inflation would reach 1.3 percent this year and 2 percent next year, both below the inflation target band by the Bank of Korea of 2.5-3.5 percent. The investment bank, however, forecast inflation would reach 3 percent in 2016.
“We now expect CPI inflation to remain low for a long time due to lower commodity prices, an extended negative output gap and increased pressure on firms to cut their prices to reduce the inventory burden,” Nomura economist Kwon Young-sun wrote in a Nov. 11 report.
A separate report compiled by the Korea Center for International Finance also showed that foreign investment banking houses retained a low inflation forecast for Asia’s fourth-largest economy next year.
BNP Paribas trimmed its previous forecast of 1.9 percent for 2015 to 1.3 percent, citing a delay in the shift in the country’s negative output gap. Citigroup lowered its outlook for this year to 1.3 percent from 1.4 percent. It also cut its 2015 forecast to 1.9 percent from 2.2 percent on weak energy and agricultural product prices. (Yonhap)
Other investment banks, such as Morgan Stanley, Barclays Capital and Goldman Sachs, meanwhile, forecast the government’s stimulus efforts and a potential rebound in global oil prices may help ease pressure on falling inflation.(Yonhap)
Nomura projected that inflation would reach 1.3 percent this year and 2 percent next year, both below the inflation target band by the Bank of Korea of 2.5-3.5 percent. The investment bank, however, forecast inflation would reach 3 percent in 2016.
“We now expect CPI inflation to remain low for a long time due to lower commodity prices, an extended negative output gap and increased pressure on firms to cut their prices to reduce the inventory burden,” Nomura economist Kwon Young-sun wrote in a Nov. 11 report.
A separate report compiled by the Korea Center for International Finance also showed that foreign investment banking houses retained a low inflation forecast for Asia’s fourth-largest economy next year.
BNP Paribas trimmed its previous forecast of 1.9 percent for 2015 to 1.3 percent, citing a delay in the shift in the country’s negative output gap. Citigroup lowered its outlook for this year to 1.3 percent from 1.4 percent. It also cut its 2015 forecast to 1.9 percent from 2.2 percent on weak energy and agricultural product prices. (Yonhap)
Other investment banks, such as Morgan Stanley, Barclays Capital and Goldman Sachs, meanwhile, forecast the government’s stimulus efforts and a potential rebound in global oil prices may help ease pressure on falling inflation.(Yonhap)
