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South Korea freezes key interest rate: report

South Korea freezes key interest rate: report

South Korea's central bank yesterday unexpectedly left its key interest rate unchanged due to growing uncertainty about the strength of the global economic recovery.
Contrary to market predictions, Bank of Korea governor Kim Choong-Soo and fellow policymakers froze the benchmark seven-day repo rate for September at 2.25 percent.
In July the bank had raised the rate for the first time since the start of the world downturn, increasing it to 2.25 percent from a record low of two percent to forestall inflationary pressure.
"The Korean economy is expected to continue its solid growth, aided by robust exports and recovery in consumption and facility investment, but the possible economic slowdown in major economies and the eurozone debt crisis will act as downside risks to growth," the bank said in a statement.
It said it would "take into account overall financial and economic conditions at home and abroad" in future policy decisions.


Updated : 2020-11-30 16:02 GMT+08:00