Bank of Korea freezes key interest rate at 1.5% for August
- 6 years ago
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.
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.