Bank of Korea Holds Rate Even as Yen Clouds Export Outlook
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The Bank of Korea kept its benchmark interest rate unchanged for an eighth straight month, citing strength in Asia’s fourth-biggest economy even as a weak yen threatens some industries competing with Japanese companies.
Governor Kim Choong Soo and his board held the seven-day repurchase rate at 2.5 percent after a cut in May, the central bank said in a statement in Seoul today. Eighteen of 19 economists surveyed by Bloomberg News predicted the outcome, with Goldman Sachs Group Inc. foreseeing a cut.