Bank of Korea freezes key interest rate at 1.5% for August

Bank of Korea freezes key interest rate at 1.5% for August

South Korea’s central bank has kept its key
interest rate unchanged for August…. explaining some of the reasons behind its decision. Ko Roon-hee has more. The Bank of Korea has frozen its benchmark
interest rate at one-point-five percent for the ninth consecutive month. The central bank has been maintaining its
key rate since November last year… when it raised the rate by a quarter percentage
point. While the BOK believes the economy is on a
sound growth path based on increases in consumption and exports,… it pointed to economic uncertainties,
including July’s employment figures and low business sentiment, as its reasons for holding
the rate steady. Job growth hit its lowest point in more than
eight years last month as only five-thousand people were newly employed on-year. Consumer prices in July also remained below
the central bank’s two-percent target level at one-point-five percent. With the Bank of Korea’s decision, the key
rate difference between South Korea and the U.S. is expected to widen… raising speculation
the BOK may consider raising rates later this year. The Federal Reserve held its benchmark rate
steady at a range of one-point-seven-five percent to two percent earlier this month,…
boosting expectations it’ll raise rates in September. At present, the Fed’s rate is zero-point-five
percentage points higher than that of South Korea’s. Ko Roon-hee, Arirang News.

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