BOK keeps interest rates at record low

Bank of Korea's headquarters in central Seoul. The bank's monetary policy committee decided to maintain Korea's benchmark interest rate at 0.5 percent Thursday. [YONHAP]

The central bank maintained Korea’s benchmark interest rate at 0.5 percent Thursday.

The rate has been kept at that record low since last May.

In 2020, the monetary policy board of the Bank of Korea (BOK) lowered the base rate twice -- to 0.75 percent in March and 0.5 percent in May -- as the coronavirus pandemic started pulling down the economy.

Last month, BOK Gov. Lee Ju-yeol hinted at a potential rate hike this year if the economy started recovering. That plan is likely to be derailed by a surge in coronavirus cases, the so-called fourth wave of Korea’s pandemic.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]