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The Bank of Korea

Korean interest rate unchanged

Thu, 12/10/2009 - 20:38 by Inderjit Singh

Seoul -- South Korea's central bank Thursday left its key interest rate unchanged at two percent for the 10th straight month while noting the economic recovery.

In announcing the benchmark seven-day repo rate would stay at 2 percent, Bank of Korea Gov. Lee Seong-rae said, "The prospect for the Korean economy is quite bright although there is some unease in the global and local economies."

Repo rate is the rate commercial banks pay the central bank to borrow money to meet temporary liquidity needs.

"By reviewing economic data and inflation every month, the bank will weigh the timing (of a possible rate hike)," Lee said.

South Korea’s economy books major growth after 2002

Mon, 10/26/2009 - 10:11 by Ishita Sood

Seoul, October 26-- As Asian economies take the world out of the credit crunch, South Korea’s economy grows at the fastest rate registering a growth after more than 7 years in the third quarter.

Bank of Korea freezes lending rate

Fri, 03/13/2009 - 09:19 by Shruti Sharma

Seoul -- The Bank of Korea Thursday said it would keep its key lending rate at 2 percent, in part to leave room for further reductions if needed later.

"It is highly likely that economic growth will sharply fall," BOK Gov. Lee Seong-tae said, explaining the decision to freeze the rate for another month after six consecutive rate cuts, the Yonhap News Agency reported.

"The economic downturn is expected to be longer and deeper than previously anticipated," he said.

As global demand for Korean exports has waned, the country's economy contracted 5.6 percent in the last quarter, Yonhap said.

Economists said the bank's pause in rate cutting comes amid fears of deflating the won or triggering inflation.

Consumer prices in Korea rose 4.1 percent in February on an annual basis, up from 3.7 percent in January.