ZCZC
BCN-40
S.KOREA-BENCHMARK-RATE
S.Korea freezes benchmark interest rate at 1.5 pct for 11 months
SEOUL, Oct. 18, 2018 (BSS/Xinhua) – South Korea’s central bank on Thursday
froze its benchmark interest rate for 11 months as growth outlook dimmed
further.
Bank of Korea (BOK) Governor Lee Ju-yeol and six other monetary policy
board members decided to keep its target rate on hold at 1.50 percent. The
BOK refrained from altering the rate since the bank raised it to the current
level in November last year from an all-time low of 1.25 percent.
It was in line with market expectations. According to a Korea Financial
Investment Association (KFIA) survey of 100 fixed-income experts, 65 percent
predicted a rate freeze.
The rate freeze came as the BOK lowered its growth forecast for the South
Korean economy in 2018 to 2.7 percent from 2.9 percent estimated three months
earlier.
It was the lowest in six years. The finance ministry set its growth
outlook for this year at 2.9 percent.
BSS/XINHUA/HR/1430