South Korea's central bank vowed Tuesday to keep the current monetary easing policy to support growth amid uncertainties at home and abroad.
The Bank of Korea has left its key rate unchanged at an all-time low of 1.25 percent since June when it made a surprise rate cut to bolster Asia's fourth-biggest economy.
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(Yonhap) |
"We plan to maintain the monetary easing policy to support the recovery of economic growth," the BOK said in a report submitted to the National Assembly earlier in the day.
The BOK also said it will conduct monetary policy while paying attention to financial stability.
BOK Gov. Lee Ju-yeol made his case for maintaining the monetary easing policy during his speech for the new year.
The BOK said it will closely monitor changes in financial and economic situations over the pace of US rate hike and growing protectionism around the world.
In December, the US Federal Reserve raised its key interest rate by a quarter of a percentage point to a range of 0.5 percent to 0.75 percent. It also signaled three rate hikes in 2017.
The BOK said it will thoroughly brace for increased volatility in financial and foreign exchange markets over a possible shock at home and abroad.
It also vowed to stabilize rising household debt through cooperation with the government and the financial authorities as US rate hikes could put debt payment burdens on households.
South Korea's overall household debt reached a record high of 1,295.8 trillion won ($1.1 trillion) as of end-September, according to the BOK. (Yonhap)
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