Bank of Korea Raises Growth Forecast, Keeps Rates Steady
- Benchmark borrowing cost held at record-low 1.25% as forecast
- Economic growth this year is expected to reach 2.8 percent
Bank of Korea Holds Key Rate at 1.25%
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South Korea’s central bank held its benchmark interest rate unchanged on Thursday while raising its growth forecast as exports and plans for fiscal stimulus add to optimism for the economy.
The Bank of Korea’s policy board voted unanimously to keep the seven-day repurchase rate at a record-low 1.25 percent, as forecast by all economists surveyed by Bloomberg. Governor Lee Ju-yeol said gross domestic product will expand 2.8 percent this year, exceeding the previous forecast of 2.6 percent, and close to the country’s potential growth rate.