South Korea’s central bank unexpectedly holds policy interest rates steady

SOUTH Korea’s central bank unexpectedly left its policy interest rate unchanged on Thursday, weighing the impact of its back-to-back rate cuts last year while supporting the won which weakened to a 15-year low versus the US dollar in recent weeks.

The Bank of Korea held its benchmark interest rate at 3 per cent at its monetary policy review, an outcome expected by only seven of 34 economists polled by Reuters. The remaining 27 had expected the bank to cut the rate by 25 basis points.

Governor Rhee Chang Yong will hold a news conference at around 0210 GMT, which will be livestreamed via YouTube. REUTERS