Bank of Korea leaves rates at record low, as expected

[SEOUL] South Korea's central bank held its key interest rate steady on Thursday, as expected, as it evaluates risks and stays cautious ahead of any further monetary tightening in the United States.

A Bank of Korea media official did not elaborate on the monetary policy committee's decision to keep the base rate at its record-low 1.25 per cent. Governor Lee Ju-yeol is due to hold a news conference from 11.20am Seoul time (0220 GMT).

All 20 analysts in a Reuters poll had forecast the central bank would hold rates but a slim majority predicted the bank will tighten policies sometime next year.

The BOK's next policy meeting - and last for this year - will be on Nov 30, before a Federal Reserve meeting that most economists expect will increase U.S. rates for the third time in 2017.

South Korea's key rate has been kept at 1.25 per cent since June 2016.

REUTERS