Seoul: South Korea’s central bank kept its key interest rate unchanged on Thursday to maintain financial stability amid rising property prices and a weak currency. The Bank of Korea’s Monetary Policy Board decided to freeze the key interest rate at 2.5% during its meeting on Thursday to determine interest rates, marking the third consecutive rate hold, despite the bank’s emphasis on the need to support economic recovery through monetary easing.
According to Yemen News Agency, the central bank began its monetary easing cycle in October of last year and has cut key interest rates by a total of 100 basis points since then, with the last rate cut in May. The government also tightened lending rules, lowering the ceiling for mortgage loans to 200 million won ($6,139,000) from 600 million won last June.