South Korea’s central bank is expected to freeze the key interest rate for the 12th consecutive month for May amid no clear signs that the economy is recovering, experts said Tuesday.

The Bank of Korea has maintained its benchmark seven-day repo rate at 2.5 percent since May last year when it cut the rate by 0.25 percentage point.

Experts expect the BOK will keep its stance as there are not many major factors that require a change in monetary policy. More time is also required to gauge the effects of rate adjustments made by other countries, they added. The BOK is to hold a rate-setting meeting on Friday.

“There are no reasons either to lower or hike the interest rate at this point,” said Jeon Min-kyu, an economist at Korea Investment & Securities. “If you were to see the latest indices as signs that the Korean economy is rebounding, you would be wrong.” (Yonhap)