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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World S.Korea freezes key interest rate for 14th month AFP - 2 hours 45 minutes ago Send IM Story Print SEOUL (AFP) - – South Korea's central bank Friday froze its key interest rate at a record low for the 14th straight month, citing risks to the global economic recovery. At his first rate-setting meeting, the new Bank of Korea governor Kim Choong-Soo and five policymakers left the benchmark seven-day repo rate unchanged at 2.0 percent for April. The bank said the domestic economy, Asia's fourth largest, was sustaining its recovery trend. Even though construction investment had been somewhat inactive, exports were buoyant and consumption and facilities investment had steadily increased, it said in a statement. "This recovery trend is expected to be maintained. Considering the overseas risk factors, however, there still remains uncertainty as to the economic growth path," it added, citing debt problems in some European nations. The bank said inflation was expected to be stable for some time and the upward trend of real estate prices had been blunted amid slow transactions. It said the "accommodative policy stance" would be maintained for the time being to sustain the economic recovery, "taking into overall consideration financial and economic conditions domestically and abroad". The freeze was widely expected since new governor Kim has stressed coordination with the government, which says it is too soon to scrap stimulus measures. The bank had cut the rate by a total of 325 basis points between October 2008 and February last year. "The timing of exit strategies by major advanced economies and the pace of the global economic recovery are expected to serve as a prerequisite for a rate hike," Oh Chang-Sup, an economist at IBK Securities, told Yonhap news agency. "The central bank is likely to gradually raise the rate as early as the second half or starting in the first half of next year," he said. Recommend Send IM Story Print Related Articles US wants quick start to beef talks with Japan AP - 11 minutes ago India's billion-dollar 3G auction opens AFP - 28 minutes ago SCENARIOS-Bid frenzy around Australia's Macarthur Coal Reuters - 30 minutes ago European shares rise; banks, commodities gain Reuters - 30 minutes ago China stocks close higher on earnings prospects Reuters - 36 minutes ago News Search Top Stories German exports jump in February: statistics Legendary Soviet diplomat Dobrynin dead at 90 Countries list priceless relics they want returned to them Greece sinks deeper as loan costs hit record highs Two-million-year-old hominid sheds light on evolution More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Taiwan's male 'Susan Boyle' a web sensation Two-million-year-old hominid sheds light on evolution Countries list priceless relics they want returned to them Astronomers solve enigma of eclipsing star Legendary Soviet diplomat Dobrynin dead at 90 More Most Viewed » 'Rare' fossil of new dinosaur species found in US Junkies and junk-food addicts share craving mechanism Toad is a telltale for impending quakes: scientists More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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