S. Korea keeps rate at record low

South Korea’s central bank on Thursday left its key interest rate unchanged at a record-low 1.5 percent for the fifth straight month ahead of a possible US rate hike.

The widely expected decision by the Bank of Korea was reached unanimously by its seven-member Monetary Policy Board, following a cut of 0.25 basis points in June.

The bank has cut its interest rate by a full percentage point in four stages since August last year.

The board forecast a continued recovery in the domestic economy, but said uncertainties surrounding the growth path remained “high”.

It particularly highlighted a persistent slump in exports, which account for about half of South Korea’s gross domestic product.

The board also voiced concern about the possible impact on the global economy — especially emerging markets — if hints by the US Federal Reserve of a December rate hike become a reality. (AFP)