South Korea’s central bank leaves key interest rate unchanged at record low
South Korea’s central bank on Thursday left its key interest rate unchanged at a recordlow 1.5 percent, despite few indications that a looser monetary policy is boosting economic growth.
The decision by the Bank of Korea (BOK) was widely expected, following a cut of 0.25 basis points in June.
The BOK has instituted four cuts in the past 12 months, totaling a full percentage point.
But Asia’s fourth-largest economy has shown little sign of improvement, with growth in the second quarter slowing to just 0.3 percent — partly due to an outbreak of the MERS virus that stifled consumer spending.