S.Korea freezes interest rate at record low of 0.50 pct

Source: Xinhua | 2020-07-17

South Korea's central bank on Thursday froze its benchmark interest rate at a record low to see the effect of the previous rate cuts earlier this year amid lingering worry about an economic fallout from the COVID-19 outbreak.

Bank of Korea (BOK) Governor Lee Ju-yeol and other monetary policy board members decided to keep the seven-day repurchase rate on hold at an all-time low of 0.50 percent.

The rate freeze decision was in line with market expectations. According to a Korea Financial Investment Association (KFIA) survey of 200 fixed-income experts, 99 percent predicted the rate on hold.

The central bank lowered the target rate by 25 basis points in May after slashing it by 50 basis points in March to tackle the economic downturn from the COVID-19 pandemic.