Bank of Korea Freezes Key Interest Rate at 3pc
Seoul, 16 Jan (ONA) --- Korea's central bank kept its benchmark interest rate frozen today in the wake of the weak local currency amid political chaos and uncertainties stemming from the new Donald Trump administration.
The monetary policy committee of the Bank of Korea (BOK) held its key rate unchanged at 3 percent during a rate-setting meeting in Seoul, according to South Korea's (Yonhap) News Agency.
The on-hold decision came on the heels of two rate cuts in the prior meetings in October and November, which marked the first back-to-back interest rate cuts since February 2009 when the country was reeling from the aftermath of the global financial crisis.
The BOK expected the economy to grow 1.9 percent in 2025, which is below the potential growth rate of 2 percent.
Earlier this month, the finance ministry presented a bleaker outlook of a 1.8 percent expansion in 2025, given heightened uncertainties from the political chaos and external factors.
--- Ends/Khalid