Bank of Korea committee leaves base interest rate unchanged at 2%

By Angela McDaniels

Tacoma, Wash., Nov. 12 - Bank of Korea's Monetary Policy Committee left its base interest rate unchanged at 2% at its meeting on Thursday, according to a news release issued by the bank.

The committee said domestic economic activity has shown a recovering trend due to the progress of the global economic situation and that exports, domestic demand and production have improved.

Despite the progress, uncertainty remains as to the economic growth path, the committee said.

The committee noted that consumer price inflation has been stable, influenced by the appreciation of the Korean won against the dollar, and that the upward trend of real estate prices appears to have faltered.

In the financial markets, the committee found that the volatility of price variables such as stock prices and interest rates has expanded "somewhat" while the growth of mortgage lending has continued to flatten due to the expansion of areas where debt-to-income ratios are applied and higher lending rates.

The committee has now held the interest rate at 2% at 10 straight meetings dating back to February 2009.

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