S Korea keeps key interest rate unchanged
Friday, 12 October 2007
SEOUL, Oct 11 (AFP): South Korea's central bank today kept its key interest rate unchanged for a second month to shore up the economy following recent turbulence in world financial markets.
The October target for the call rate, the interest charged on overnight interbank loans, remains at a six-year high of five per cent.
The Bank of Korea raised the key rate by a quarter of one per cent in both July and August, mainly to tackle high liquidity growth that could trigger inflation and an asset bubble.
But it froze the rate last month amid turmoil in global financial markets arising from US subprime mortgage defaults.
The October target for the call rate, the interest charged on overnight interbank loans, remains at a six-year high of five per cent.
The Bank of Korea raised the key rate by a quarter of one per cent in both July and August, mainly to tackle high liquidity growth that could trigger inflation and an asset bubble.
But it froze the rate last month amid turmoil in global financial markets arising from US subprime mortgage defaults.