Bank of Korea Keeps Rates On Hold 13-Feb-2014


The Bank of Korea held its policy interest rate steady at 2.5% Thursday, as widely expected, citing contained inflation and continued economic recovery. The committee forecasts that inflation will gradually rise, although it will remain low for the time being due largely to the stability of international commodity prices, the central bank said in a statement following the decision. It said that while South Korea’s domestic demand had slumped temporarily, exports were improving and the recovery remained in line with the trend of growth. The central bank hasn’t changed the benchmark rate since May of last year.