RoK central bank maintains key rate at 1.25 percent

BOK Governor Lee Ju-yeol (Source: Yonhapnews)

Seoul (VNA)
– The Republic of Korea’s central bank on July 13 held its key rate steady for
July to support the country’s growth, according to the local media.

RoK’s news agency Yonhap
reported that in a widely expected move, the monetary policy board of the Bank
of Korea (BOK) voted to keep the key rate at 1.25 percent, extending its
wait-and-see approach for the 13th consecutive month.

In June last year, the
central bank made a surprise rate cut, citing a need to stimulate the
lackluster economy amid a prolonged economic slowdown.

Besides, BOK also
revised up its growth outlook for Asia’s fourth-largest economy this year to
2.8 percent from 2.6 percent.

BOK Governor Lee
Ju-yeol announced the estimate in a news conference after the BOK Monetary
Policy Board kept its policy rate at an all-time low of 1.25 percent in July.

The BOK’s gross
domestic product (GDP) growth estimate for 2017 is 0.2 percentage point higher
than the central bank’s estimate released in April.

Lee said the BOK’s
latest revision did not take into account the extra budget of 11.2 trillion-won
(9.83 billion USD) being sought by the government.

The RoK government
submitted the extra budget to the National Assembly in June, though parliament
has yet to review the bill due to a political standoff.-VNA

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