Korean interest rates kept at record low

The central bank in South Korea has kept interest rates frozen at 2.0% for the seventh successive month.

In the interest rate announcement, the bank said that whilst domestic economic activity is improving, uncertainty over the prospects for economic growth remained.

The Bank of Korea had seen recovery in domestic demand and in exports, an increase in production, an upward trend in property prices and expansion in mortgages in recent months.

However, the bank said it would maintain its accommodative monetary policy stance to continue to support economic growth and financial stabilisation.

Last week the bank announced that the Korean economy grew 2.6% in the three months to June, beating forecast growth of 2.3%.

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