BOK 'freezes' benchmark interest rate for first time this year...Maintain 3% per annum

The Bank of Korea froze its key interest rate for the first time this year.

The Monetary Policy Committee of the Bank of Korea held a meeting this morning (16th) and decided to maintain the existing interest rate of 3% per annum.

The benchmark interest rate was cut by 0.25%p twice in a row last year (October and November) due to concerns about an economic downturn.

Again, the possibility of three consecutive cuts was mentioned to stimulate the economy, but

appears to have been frozen due to the high cost of the won-dollar exchange rate.

As the benchmark interest rate was tied to 3% per annum, the interest rate difference between Korea and the United States remained at 1.5%p.