South Korea keeps policy rate on hold

By IANS,

Seoul: South Korea’s central bank Thursday kept its policy rate on hold at 2.75 percent, maintaining the wait-and-see stance for five straight months, media reports said.

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Bank of Korea (BOK)’s monetary policy board members decided to freeze the seven-day repurchase rate at 2.75 percent after cutting the rate by 25 basis points in July and October last year, reported Xinhua.

The decision was roughly in line with market expectations, as many experts predicted the rate freeze on speculation that the central bank would wait for fiscal stimulus measures to maximize the effect of policy mix.