한은, 기준금리 6개월째 동결…연 1.75%<br /><br />The nation's central bank kept its key rate steady.<br />The widely expected decision was reached after its monetary policy meeting earlier today.<br />Kim Hyesung help us look beyond the digits. <br />The Bank of Korea on Friday kept its benchmark interest rate unchanged at 1-point-75 percent.<br />In a vote of six-to-one, the seven member monetary policy board decided to freeze the rate for the fourth straight meeting, keeping a wait and see stance since last November. <br />"Since April, the pace of global economic growth has continued to slow, including growth in China, Japan and Europe. Volatility in the global financial markets has increased amid rising U.S.-China trade tensions. Stocks in major countries have fallen while the currencies of emerging economies have depreciated substantially."<br />On slowing global demand, exports, a key driver of South Korea's domestic growth, have fallen for five straight months since December on slowing global demand.<br />For the first 20 days in May, exports tumbled 12 percent on-year,... and chip sector shipments are heading for a sixth straight month of decline after plunging 22 percent. <br />Falling exports and investment caused GDP growth to contract zero-point-three percent in the first quarter, the worst quarterly figures since the 2008 global financial crisis.<br /> Headline inflation remained at around zero-point-five percent through April, lower than the central bank's two percent target.<br />"Despite sluggish domestic economic data, the Bank held rates due to growing financial market volatility, The South Korean won has depreciated rapidly in recent months. A cut in interest rates could further drive down the value of the won, resulting in a capital outflow. The central bank will likely wait until second quarter economic indicators come out before changing rates."<br />At the same time, household debt, which has seen its growth slow in recent months, is still the size of Korea's GDP of 1-point-three trillion U.S. dollars, another reason why the BOK opted to keep rates unchanged.<br />"The Bank of Korea said it will maintain its accommodative monetary policy stance to support the domestic economy, and added that it will carefully monitor the U.S.-China trade dispute as well as paying close attention to the country's financial stability.<br />Kim Hyesung, Arirang News. <br />
