The Bank of Korea kept borrowing
costs unchanged as it monitors the impact of last month’s rate
cut and fiscal stimulus on Asia’s fourth-largest economy.
Governor Lee Ju Yeol and the board held the seven-day
repurchase rate near a four-year low of 2.25 percent, as
forecast by all 20 economists surveyed by Bloomberg News.
Today’s decision followed a 25 basis points cut last month that
was the first reduction in more than a year.
South Korea’s bonds rallied, pushing the three-year yield
to the lowest level in more than a year, after Lee said one
member of the policy board called for an interest-rate cut.
Finance Minister Choi Kyung Hwan said this week that the
economic recovery is weak and both fiscal and monetary policies