Bank of Korea left its key rate unchanged Thursday in a widely expected decision.
The central bank’s monetary policy board kept the base rate frozen at a record low of 1.5 percent for March.
Bank of Korea Gov. Lee Ju-yeol at a rate policy setting meeting today. (Yonhap)
The BOK has stood pat on the key interest rate since July after delivering four rate cuts in less than a year to help bolster growth in South Korea.
The decision comes amid growing signs of a slowdown in Asia’s fourth-largest economy.
South Korea’s exports have dropped for 14 consecutive months since the start of last year, plunging 12.2 percent on-year in February alone.
Domestic consumption, one of the nation’s two main pillars of growth, has also been on the decline, with an index gauging consumer sentiment here dipping to an eight-month low last month.
Economists have pointed to growing household debt as a factor that may prevent an additional rate cut at least for some time.
The country’s household credit, which represents total household borrowing, reached a record high of 1,207 trillion won ($993.4 billion) at the end of last year.
(khnews@heraldcorp.com)
