Bank of Korea leaves base rate unchanged at 2%

By Richard Connell

New York, March 12 - The Monetary Policy Committee of the Bank of Korea left its base rate unchanged at 2% at its meeting on Thursday, according to a press release issued by the bank.

The committee pointed out that economic activity in Korea has continued to decline, reflected by a decrease in both domestic demand and exports.

The committee also noted that the downside risk to economic growth has been heightened by the deepening global economic crisis.

Although inflation has moved higher due to a devaluation of the won, the committee believes that the domestic economic slowdown will act as a rein on inflation.

Prior to this meeting, the rate had been reduced at six consecutive meetings by a total of 325 basis points.

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