Consumer confidence takes dip after interest rate hike

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Consumer confidence takes dip after interest rate hike

Consumer confidence about economic prospects dropped for the first time in three months, central bank data showed Wednesday.

The Bank of Korea said the composite consumer sentiment index (CCSI) stood at 110.9 in December, down 1.4 points compared to the previous month. A reading above 100 points indicates the majority of survey participants maintain a positive outlook on the national economy, while a reading below 100 indicates a negative view.

The index was buoyant until recently, driven by strong exports. Some analysts noted that the weakened sentiment could have been caused by the central bank’s decision to increase its key interest rate last month to 1.5 percent from a record low of 1.25 percent.

By Park Eun-jee
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