Bank Of Korea Keeps Key Rate At Record Low

KELLY OLSEN

SEOUL, South Korea (AP) — South Korea's central bank left its key interest rate at a record low for the ninth straight month Thursday, pledging to maintain low borrowing rates to help extend a recovery in Asia's fourth-largest economy.

The Bank of Korea decision to keep the benchmark seven-day repurchase rate at 2 percent came at a monthly policy meeting and was in line with expectations.

The bank's monetary policy committee said in a statement that it will stick to its "accommodative policy stance for the time being with an emphasis on sustaining the recovery of economic activity." The wording was broadly similar to last month's statement.

South Korea's economic recovery, a rise in housing prices and a decision last month by Australia's central bank to lift rates had created expectations the Bank of Korea might hike borrowing costs at its October meeting.

However, the bank at the time largely doused speculation an increase would come before the end of the year by offering no fundamental change in wording to its policy statement.