Korea's central bank has left its key rate UNCHANGED at two-and-a-half percent for the twelfth straight month in May as there are signs the Sewol-ho ferry disaster has slowed consumer spending.
Following its monthly monetary policy meeting on Friday, the Bank of Korea said the economy at home and abroad is on a moderate pace of recovery.
It will, however, closely monitor the impacts the ferry disaster could have on the domestic economy.
Bank officials also noted risks coming from emerging markets due to the U.S. Federal Reserve's stimulus tapering and the strong local currency.
The nation's inflation rate ran below the BOK's target band for the 23rd straight month in April, standing at 1-and-a-half percent.
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