2023-10-19 03:48:29
The Bank of Korea decided Thursday to hold the key interest rate unchanged for the sixth time in a row, amid slowing growth and increasing uncertainties such as the protracted war between Ukraine and Russia and rising household debt.
In a widely expected decision, the Bank of Korea’s Monetary Policy Council left the benchmark 7-day repurchase rate unchanged at 3.5 percent.
This is the sixth time in a row that the bank has fixed interest rates following freezing interest rates in February, April, May, July and August. This came following the central bank raised interest rates 7 consecutive times in the period from April 2022 to January 2023.
The local economy faces the possibility of a slowdown in the face of increasing economic risks in China, the country’s largest trading partner, and an extended decline in foreign shipments amid easing inflationary pressures.
The Korean Central Bank said last September that it would continue to maintain its current tight monetary policy due to the continued rise in inflation.
It is noteworthy that the international credit rating agency “Fitch” had maintained South Korea’s sovereign rating at the level of “AA-” with a stable outlook, and this is the fourth highest level at the agency, and “Fitch” has maintained the country’s rating at the level of “AA-” Since September 2012.
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