Bank of Korea holds benchmark interest rate

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Bank of Korea holds benchmark interest rate

Published: 12 Oct. 2021, 09:48 Updated: 12 Oct. 2021, 10:11

Bank of Korea Gov. Lee Ju-yeol during a monetary policy board meeting in August [BANK OF KOREA]

The Bank of Korea (BOK) held Korea's benchmark interest rate at 0.75 percent Tuesday, despite previous signaling of another rate hike this year.

The monetary policy board of the central bank had raised the country's key interest rate by 25 basis points in the previous meeting held in August. It was the first time in 33 months that the board had raised rates.

The bank had been signaling a potential rate hike through multiple reports and briefings.

The bank stressed in its financial stability report released last month that it needed to further raise the country's key interest rate to resolve worsening financial imbalances.

"Considering the macroeconomic situation in Korea, a rate hike will contribute to maintaining the financial stability of households, companies and financial institutions and in the longer term resolving financial imbalances," the report wrote.

Analysts had been expecting another rate hike within 2021. There is one remaining monetary policy board meeting this year, in November.

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