South Korea keeps key interest rate at 2.5% amid recovery, tame inflation
December 13, 2013, 12:13 am TWN
SEOUL -- South Korea's central bank on Thursday kept its key interest rate unchanged at 2.5 percent for the seventh straight month as the economy shows signs of a moderate recovery while inflation remains tame.
In announcing its decision the Monetary Policy Committee of the Bank of Korea cited low inflation and continued uncertainty over the future of the U.S. Federal Reserve's stimulus program.
The bank said Asia's fourth largest economy would maintain its uptrend in step with a modest global recovery, with both domestic demand and exports increasing.
But it still sees downside risks such as any volatility caused when the U.S. Fed eventually starts winding down its bond-buying scheme, which has been credited with fuelling an investment splurge in Asia since late last year.