Bank of Korea elects to leave its base interest rate unchanged at 2%

By Richard Connell

New York, Feb. 11 - The Monetary Policy Committee of the Bank of Korea left its base interest rate unchanged at 2% at its meeting on Thursday, according to a news release issued by the bank.

The committee noted that domestic economic activity in Korea has continued to recover, indicated by increases in exports and production.

Inflation has accelerated its rising pace since the last meeting, but looking forward the committee anticipates stabilization.

The committee also pointed out that exchange rates and stock prices have shown high volatility, while mortgage lending and the uptrend in real estate prices have slowed.

The committee noted that it would maintain its "accommodative policy stance" for the time being in order to help sustain the trend of economic recovery.

The committee has now held the rate at 2% for 12 straight meetings dating back to last February.

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