Bank of Korea Leaves Key Interest Rates Unchanged at 2.75%
The Bank of Korea is leaving its key interest rate unchanged for a fifth straight month in March, at two.seven-five percent.
Following its monthly economic policy meeting on Thursday, central bank officials decided on the rate freeze based on forecasts that the economy will stay on the path of moderate recovery.
"As of now, we are freezing the rates based on the economic situations from last month, this month, and on future outlooks. And when it comes to cooperating with government policy, we will make a decision when the time comes, based on economic circumstances."
Few analysts were surprised by Thursday's decision, as there was little reason to lower rates.
"Some economic indicators are showing signs of recovery and the won's depreciation against the U.S. dollar is slowing down, so this makes it more difficult for the central bank to lower its interest rates."
Analysts however did not completely rule out the possibility of a rate decrease, as some economic indicators continue to show uncertainty in the global market, and since President Park Geun-hye has placed an emphasis on reviving the sluggish economy.
"The BOK governor said the decision on this month's rate freeze was not unanimous, without elaborating further. But he added that central bank officials will keep a close watch on the global economic situation to ensure stability in the domestic market.
Kim Han-ul, Arirang News."
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