The Straits Times
Published on Oct 02, 2012

South Korea central bank targets economic growth


SEOUL (REUTERS) - South Korea's central bank said on Tuesday it was now directing policy at lifting economic growth, as a survey showed the manufacturing sector shrank by the most in nearly four years.

The manufacturing weakness reinforced the case for an interest rate cut next week.

The Bank of Korea's comment, contained in its compulsory policy report to parliament, marked a shift in emphasis toward encouraging growth and away from achieving price stability, which had been stressed in its statement last month.

The HSBC/Markit survey showed the purchasing managers' index of South Korea's export-reliant manufacturing sector fell to a seasonally adjusted 45.71 in September from 47.50 in August, touching its lowest since February 2009.