Bank of Korea leaves base interest rate unchanged at 2%

By Richard Connell

New York, May 12 - The Monetary Policy Committee of the Bank of Korea left its base interest rate unchanged at its meeting on Wednesday, according to a news release issued by the bank.

The committee pointed out that while both emerging market and major economies have shown improving trends, uncertainty remained regarding the government debt problems of several Southern European countries.

The domestic economy of Korea has continued to show recovery, led by increases in exports, facilities investment and consumption.

Consumer price inflation accelerated temporarily due to increases in farm and fisheries products. Looking forward, the committee forecast inflation remaining stable before increasing due to demand pressure as the economy recovers further.

The committee left the rate unchanged at 2% for the 15th straight meeting dating back to February 2009, while hinting it would continue to maintain its "accommodative policy stance."

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