Bank of Korea Hold Key Rates as Expected

South Korea’s central bank kept its benchmark interest rate unchanged for a fifth straight month on Thursday, despite concerns over whether growth in Asia’s fourth-largest economy is back on track.

The Bank of Korea’s (BOK) decision to leave the inter-bank lending rate at 2.75 per cent — after two cuts in July and October last year — was in line with most analysts’ expectations.

South Korea’s export-driven economy grew 2.0 per cent in 2012 — the slowest pace in three years — compared with 3.6 per cent growth in the previous year.

The deceleration was largely blamed on sagging demand due to the eurozone debt crisis and a slowdown in China.

The central bank recently slashed its forecast for economic growth for this year to 2.8 per cent from 3.2 per cent estimated last October.

ChannelNewsAsia

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.