Bank of Korea keeps benchmark interest rate steady at 0.5%
Updated: 2020-07-16 12:12:17 KST
South Korea's central bank has kept its benchmark interest rate steady at zero.five percent.
The decision was made during the Bank of Korea's monetary policy meeting on Thursday, as it looks to nurse the economy through the COVID-19 pandemic, as well as avoid a further rate cut that could overheat the already heated real estate market.
(KOREAN - ) ed: steve
"With uncertainty still high in the domestic economy, we have decided to keep the rate unchanged as there's a need to monitor how quantitative easing influences economic activities and financial markets. The central bank will also closely monitor the effects of the government's real estate market stabilization policies."
The rate freeze comes a little less than two months after the bank slashed its key interest rate to the historic low of zero.5 percent in late May.
The Bank of Korea said it expects the pace of the domestic recovery in consumption and exports to be slower than previously thought, and said the GDP growth this year will likely be lower than the previous May forecast of negative point-two percent.