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South Korea keeps interest rate at record low

Thursday, August 11, 2016 - 10:12
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South Korea's central bank left its key interest rate unchanged on Thursday after cutting it to a record low in June to bolster the sagging economy.

[SEOUL] South Korea's central bank left its key interest rate unchanged on Thursday after cutting it to a record low in June to bolster the sagging economy.

The Bank of Korea maintained the key rate at 1.25 per cent for August, the bank said in a press statement.

The move was widely expected as the bank's monetary board waits to see the impact of its last cut and a 20 trillion won (S$22.8 billion) stimulus package unveiled in late June.

Asia's fourth-largest economy posted marginally improved growth in the second quarter as exports and domestic consumption picked up.

The economy grew 0.7 per cent in the April-June period from the previous quarter and 3.2 per cent compared to a year earlier, the bank said.

Exports, which account for nearly half of the country's GDP, grew 0.9 per cent from the January-March period on increased overseas demand for semiconductors, petroleum and chemical products.

AFP