Bank of Korea unexpectedly holds policy rate amid political turmoil
Central bank cites need to assess political developments and incoming US administration’s policies
The Bank of Korea (BoK) has unexpectedly held its policy rate, with governor Rhee Chang-yong highlighting the need to further assess the country’s political situation.
The BoK’s seven-member monetary policy board decided to leave the base rate at 3%. This followed two consecutive 25 basis point cuts in October and November. One board member, Shin Sung Hwan, voted for a 25bp rate cut at today’s meeting.
The decision comes as South Korea grapples with political turmoil triggered by president Yoon
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