BOK vows to keep monetary easing policy

South Korea's central bank vowed Thursday to maintain the current monetary easing policy to support growth.

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.

The BOK will "maintain its stance of monetary policy accommodation as the inflationary pressures are not expected to be high given the moderate pace of domestic economic growth," the BOK said in a report submitted to the National Assembly earlier in the day.

The central bank also said it will take into account South Korea's macroeconomic conditions and financial stability in conducting a monetary policy, though it said a US rate hike is one of the key considerations.

Earlier this month, the US Federal Reserve raised its key rate by a quarter of a percentage point to a target range of 0.75 to 1 percent. It also signaled that additional hikes would be made in a gradual manner later this year.

BOK Governor Lee Ju-yeol has said that the US rate increase does not necessarily mean the BOK will immediately raise its interest rates.

The bank also said in the report that South Korea will take measures to stabilize markets in case of any drastic volatility due to foreign capital outflows. (Yonhap)