Korea: Central Bank holds policy rate in February
February 9, 2012
At its 9 February monetary policy meeting, the Bank of Korea (BoK) kept the Base Rate unchanged at 3.25%, a decision that was in line with market expectations. Monetary officials have refrained from raising rates for eight consecutive months, after last tightening the reins in June 2011. At the current level, however, the policy rate still remains at its highest level since November 2008. In the accompanying statement, the BoK continues to highlight the ?sluggishness? in the performance of major economies, in addition to signs of moderation in emerging markets. However, the Bank believes that the Korean economy ?will gradually return to its long-term trend level going forward, after remaining subdued for some time due mostly to the impact of external risk factors.?