Central Banks
Bank of Korea to Keep Policy Restrictive After Standing Pat
- BOK keeps open option to raise rates again to combat inflation
- GDP is seen rising slightly below forecast of 1.6% in February
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The Bank of Korea kept its benchmark interest rate unchanged and said it intends to keep policy restrictive to combat inflation even with the economy set to slow more than previously expected this year.
The central bank held its seven-day repurchase rate at 3.5% on Tuesday, as forecast by economists. Unlike in February, the latest decision was unanimous, an outcome that points to growing concern among board members over the risks for the economy.