Bank of Korea left the key interest rate at 1.25% unchanged

The Bank of Korea maintained the key interest rate at 1.25%. This decision comes after the central bank decided to increase the interest rate in January.

Bank of Korea left the key interest rate at 1.25% unchanged

It did so likely due to rising household debt and consumer prices. Two months ago, the Bank of Korea raised its rate to 1 percent from the previous point-7-5%.

"Consumer price inflation in Asia’s fourth-largest country jumped to a near-decade-high of 3.6% in January. This was still above the central bank's target of 2% for a tenth month.

Analysts at Reuters explained that the BOK raised interest rates three more times in August to ease price pressures and curb rampant house-price growth and household debt.


 

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