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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Bank of Korea keeps key interest rate at 2 percent By KELLY OLSEN,AP Business Writer AP - Tuesday, May 12 SEOUL, South Korea - South Korea's central bank left its key interest rate unchanged Tuesday at a record low for a third straight month amid signs the country's slumping economy is improving. ADVERTISEMENT The Bank of Korea kept the benchmark seven-day repurchase rate at 2 percent at a regular monthly policy meeting. The central bank slashed the rate six times since early October, with one of the cuts coming at an emergency meeting. South Korea's export-driven economy, battered by declines in global consumer demand, has been grappling with its worst slowdown since the 1997-98 Asian financial crisis. But the economy, Asia's fourth largest, grew 0.1 percent in the first quarter amid signs government and central bank efforts to stimulate demand are working. The growth, though marginal, marked a turnaround from a contraction of 5.1 percent in the fourth quarter. South Korea's trade surplus hit a record high for the second straight month in April as imports fell sharply on cheaper costs for oil and as declines in exports eased, the government said earlier this month. The bank's policy committee said in a statement that South Korea's economic slowdown has moderated as the pace of decline in exports has eased and the government and central bank have taken aggressive fiscal and monetary measures. Still, the rate-setting committee was cautious about the outlook. "The downside risk to economic growth is thought to persist because of the sustained worldwide economic slump and the deterioration of labor market conditions," the statement said. South Korea's unemployment rate has steadily risen and hit 4 percent in March. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: China's Economy Philippine exports fell 30.9 pct in March: govtAFP - Wednesday, May 13 India Tata Steel says economy hits UK unit profitsReuters - Tuesday, May 12 GLOBAL MARKETS-Asian shares tumble on global economy doubtsReuters - Tuesday, May 12 Report: China-Kuwait ink $9 bln oil refinery dealAP - Tuesday, May 12 Related Articles: Business Bond insurer MBIA posts a profit, shares soarReuters - Tuesday, May 12 SUMMARY-Media speculation on Australia's 2009/10 budgetReuters - Tuesday, May 12 Husky says offshore China well may pump 150 mmcf/dReuters - Tuesday, May 12 GM executives dump stock as trading window opensReuters - Tuesday, May 12 NKorean, Brazilian ministers discuss trade, talksAFP - Tuesday, May 12 Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Australian zoo evacuated after orangutan escape British store admits it boobed in bra row Obese young men have less hope of marriage: study Venezuela oil takeovers may leave 22,000 jobless $70-80 good price for oil: French economy minister View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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