Bank of Korea holds policy rate steady with inflation below goal

Seoul

SOUTH Korea's central bank left its key interest rate unchanged on Thursday as inflation remains below target and the nation's currency trades near a multi-year high.

The decision to keep the seven-day repurchase rate at 1.5 per cent, in the next-to-last rate decision before governor Lee Ju-yeol's term ends in March, was forecast by all 17 analysts surveyed by Bloomberg. The economy is likely to grow at the 3 per cent level this year, with inflation in the upper 1 per cent range, the Bank of Korea (BOK) said in a statement.