BOK Holds its Key Rate Steady

The Bank of Korea held its key interest rate unchanged at a record low as policy makers weigh signs of a pick up in domestic demand against rising consumer debt and a slump in exports.

The central bank kept the seven-day repurchase rate at 1.75 percent on Friday, as forecast by 16 of 19 analysts surveyed by Bloomberg. Three had expected a cut to 1.5 percent.

The BOK has held fire at its last two meetings, even as China, Australia and Thailand cut borrowing costs over the last month to shore up growth. Governor Lee Ju Yeol said last month that while the latest gross domestic product data “wasn’t satisfactory,” it was enough to show improvement’s on the way.