Bank of Korea's Monetary Policy Committee keeps base rate at 3%

By Angela McDaniels

Tacoma, Wash., May 13 - The Bank of Korea's Monetary Policy Committee left the base rate unchanged at 3% at its meeting on Friday, according to a release issued by the bank. The rate has been 3% since March.

Based on currently available information, the committee expects the Korean economy to continue its underlying upward trend and the global economy to sustain its pace of recovery, although it recognizes that the sovereign debt concerns in some eurozone countries, the political unrest in North Africa and the Middle East and the impact of the earthquake in Japan pose downside risks to the global economy.

Consumer price inflation eased in April compared with March, and the committee said this was due mostly to a decline in the price of vegetables. It noted that there is a possibility inflation will be driven upward in the coming months by increased demand pressures from the economic upswing, the instability of international oil prices and elevated inflation expectations.

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