Korea Holds Key Rate at Record Low as Lee Questions More Cuts
- The benchmark borrowing cost has been at 1.5% since last June
- Exports are falling and domestic demand is weak in South Korea
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The Bank of Korea held the benchmark interest rate unchanged for a ninth month as Governor Lee Ju Yeol indicated that further cuts might have limited benefit.
The decision to keep the seven-day repurchase rate at a record low 1.5 percent was forecast by 11 of 18 economists in a Bloomberg survey. The remaining seven expected a 25 basis-point cut. Board member Ha Sung Keun dissented for a second straight month, again calling for a 25 basis point cut.