Bank of Korea Holds Key Interest Rate Steady at 3.50%

IconCryptoNewsTerminal Staff23 May, 2024

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Bank of Korea Holds Key Interest Rate Steady at 3.50%

The Bank of Korea has kept its key interest rate unchanged at 3.50% per annum, marking the eleventh consecutive freeze. This decision comes after the bank raised the key interest rate from 3.25% to 3.5% in January of last year. The bank's decision to keep rates on hold is likely due to concerns about the potential impact of a rate hike on economic growth. The South Korean economy has been slowing in recent months, and a rate hike could further dampen growth prospects. Additionally, the bank may be concerned about the impact of a rate hike on household debt levels. South Korean households have high levels of debt, and a rate hike could make it more difficult for them to repay their loans. The Bank of Korea's decision to keep rates on hold is in line with the expectations of most economists. A recent survey of economists found that the majority expected the bank to keep rates on hold at its meeting this week. The decision by the Bank of Korea to keep rates on hold is likely to have a limited impact on the Korean won. The won has been trading in a narrow range against the US dollar in recent weeks, and it is likely to continue to do so in the near term.

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