The Bank of Korea held interest rates steady on Thursday, possibly matching the analysts’ consensus view that the cut in May was the last one for the year because South Korea is on a track to recovery.
The Bank of Korea’s monetary policy committee left its base rate unchanged at 2.50 per cent, a media official said without elaborating.
Seoul markets were little changed from earlier levels as the decision was widely expected.
The 22 analysts surveyed by Reuters before the meeting were unanimous in forecasting the central bank would hold its policy steady after having cut the rate in May for the first time in seven months in a surprise move.
“After the rate cut in May, I don’t see any additional cuts as further economy slowdown doesn’t seem likely in the second or third quarter,” said Jung Sung-wook, a fixed-income analyst at KTB Securities in Seoul.
Asia’s fourth-largest economy is picking up some momentum and the increased volatility in global financial markets means the country, highly vulnerable to cross-border capital flows, had better not make any significant policy change.
