The Bank of Korea kept its benchmark rate unchanged for a second month, opting to gauge the impact of recent cuts on an economy that faces headwinds from a weak Japanese yen.
The central bank held the seven-day repurchase rate at a four-year low of 2 percent, it said in Seoul today, after cuts in August and October. The decision was forecast by 17 of 20 analysts surveyed by Bloomberg News, while the rest predicted a reduction to a record low of 1.75 percent.
The won appreciated to a six-year high against the yen this week, increasing pressure on South Korean exporters that compete with Japanese companies. Tumbling oil prices and the yen’s slide are increasing uncertainty for an economy that’s shown signs of weakness in exports and industrial production in recent months.