S Korea holds interest rate at record low

AFP, SEOUL:  South Korea's central bank kept its key interest rate unchanged at a record low 1.5 per cent for an eighth straight month yesterday, with the local currency weakening and exports extending a year-long downward trend.
The decision had been widely expected as analysts forecast the Bank of Korea's board members would extend a wait-and-see approach given the current volatility across global markets.
The bank has less room for additional monetary easing from its current record-low rate, with rocketing household debt and greater risk of capital outflows following the US Federal Reserve's interest rate hike in December.
The Korean won is Asia's worst-performing currency this year, losing 3.4 per cent against the dollar as global funds pulled money from South Korean stocks and bonds.

S Korea holds interest rate at record low

AFP, SEOUL: South Koreas central bank kept its key interest rate unchanged at a record low 1.5 per cent for an eighth straight month yesterday, with the local currency weakening and exports extending a year-long downward trend. The decision had been widely expected as analysts forecast the Bank of Koreas board members would extend a wait-and-see approach given the current volatility across global markets. The bank has less room for additional monetary easing from its current record-low rate, with rocketing household debt and greater risk of capital outflows following the US Federal Reserves interest rate hike in December. The Korean won is Asias worst-performing currency this year, losing 3.4 per cent against the dollar as global funds pulled money from South Korean stocks and bonds.