S Korea keeps rates on hold
(02-14 13:16)
Bank of Korea, South Korea's central bank, on Thursday kept interest rates on hold at 2.75 percent on better economic conditions after the South Korean won fell against the US dollar.
Governor Kim Choong-soo and the monetary policy board members decided to leave the seven-day repurchase rate unchanged at 2.75 percent at the February rate-setting meeting. The decision was not unanimous, Xinhua news agency reports.
The BOK resumed its monetary easing cycle last year by reducing borrowing costs by 25 basis points in July and October each, before maintaining a wait-and-see stance for four straight months.
"I think the monetary policy stance is now expansionary, rather than tightening," though the BOK froze the base rate, Kim told reporters. "The rate cut alone does not necessarily mean a monetary easing."
Kim noted that there remained external uncertainties such as the fiscal problems in advanced economies and the issue of foreign exchange rates.
The February decision was in line with market consensus as most experts predicted the rate freeze on improved economic conditions after the local currency reversed its appreciating trend versus the greenback recently.
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