October 19, 2023 13:07
The Bank of Korea on Thursday froze the benchmark interest rate for a sixth time at 3.5 percent despite a historic two-percent gap in interest rates between Korea and the U.S.
Ten increases since August 2021 were paused in February this year, but there remains one Monetary Policy Committee meeting in November.
Markets had expected the freeze, which comes amid a triple whammy of high inflation, a strong dollar and increased uncertainty amid the Israel-Hamas war.
In the U.S., rising bond yields have made financial conditions worse, leading to predictions that the Fed's tightening cycle may ease a bit.
The Fed will decide on its own benchmark interest rate in a meeting scheduled for Oct. 31.
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