South Korea's factories were less busy in March than had been expected.
The latest government data showed industrial output expanding by 1.4% in March from February.
Analysts had forecast growth of 1.9%.
South Korea's export-dependent economy relies heavily on its manufacturing sector to boost growth.
"I think this is a temporary blip, partly affected by Japan's quake," said Chang Hwa-tak at Dongbu Securities.
"Given that this is a short-term disruption, I don't think it will affect the central bank's immediate rate policy, which is likely to be a tightening."
Analysts believe the Bank of Korea will decide to increase borrowing costs from 3% to 3.25% in May, in order to keep down inflation.
The central bank will decide on 13 May.
Source: BBC
www.bbc.co.uk
The latest government data showed industrial output expanding by 1.4% in March from February.
Analysts had forecast growth of 1.9%.
South Korea's export-dependent economy relies heavily on its manufacturing sector to boost growth.
"I think this is a temporary blip, partly affected by Japan's quake," said Chang Hwa-tak at Dongbu Securities.
"Given that this is a short-term disruption, I don't think it will affect the central bank's immediate rate policy, which is likely to be a tightening."
Analysts believe the Bank of Korea will decide to increase borrowing costs from 3% to 3.25% in May, in order to keep down inflation.
The central bank will decide on 13 May.
Source: BBC
www.bbc.co.uk
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