BOK holds key rate at 2.25 percent

South Korea’s central bank on Friday held the base rate at 2.25 percent in a widely expected move, a month after it cut the policy rate for the first time in 15 months under government pressure.

The decision is in line with a poll conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency.

All 16 analysts surveyed forecast the Bank of Korea would freeze the key rate to assess the policy effects of ongoing stimulus measures.

“Given that the economy has not further deteriorated and that time is needed to observe the impact of economic policies, the monetary policy committee decided to leave the base rate unchanged at the current level,” BOK Gov. Lee Ju-yeol told reporters in a news conference.

The decision was made in a split vote, with one board member voting for an additional rate cut, he said. (Yonhap)