S. Korea freezes key interest rate at 3%
2011-04-12 12:34:16
South Korea's central bank Tuesday froze the key interest rate amid lingering economic uncertainties including the impact of Japan's devastating earthquake and tsunami.
Bank of Korea (BOK) governor Kim Choong-Soo and fellow policymakers kept the benchmark seven-day repo rate unchanged at 3 per cent for April, following a 25 basis point increase in March to curb inflation.
Analysts said the bank needs time to assess the impact of March's increase, and the rise of the won against the dollar would meanwhile ease imported inflation.
"A back-to-back rate hike is unlikely in April as the BOK's chief has hinted that policy normalisation will be done at a measured pace," Shin Dong-Su, an economist at NH Investment and Securities, told Yonhap news agency before the decision.
"Economic uncertainties also linger in the wake of Japan's devastating earthquake."