SEOUL, KOREA - The Bank of Korea decided to keep the benchmark interest rate unchanged on November 14. The Monetary Policy Committee within the central bank held a regular meeting in the morning of the 14th and voted to freeze the rate at 2.50 percent.

 

It has been six months since the committee lowered the rate by 0.25 percentage point in May this year.

 

The bank's decision is widely interpreted by market watchers as a move based on judgment that it remains to be seen how the financial markets would react after the U.S. Fed's quantitative easing tapering even though the economy is on a cautious recovery path.

 

Earlier in a survey by the Korea Economic Daily on members of "Hankyung Economist Club" consisting of economic professionals, all 18 respondents said the central bank would keep the benchmark rate unchanged in its November meeting. In another survey by the Korea Financial Investment Association, 99.2 percent out of 124 bond traders and analysts said there would be no change in the rate this time.

 

Kim Choong-soo, Bank of Korea governor, said on the same day in a press conference held after the Monetary Policy Committee meeting, "The decision to keep the interest rate at the current level was unanimous."