BoK to hold rates as recovery consolidates

SEOUL, Feb 12 (Reuters): South Korea's central bank will probably keep rates on hold at its monthly rate meeting on Thursday as emerging markets work through the US Federal Reserve's decision to keep trimming its stimulus.

A Reuters poll found the Bank of Korea is likely to keep its monetary policy rate unchanged at 2.50 per cent this month, with all 23 respondents seeing no change as the central bank monitors conditions outside the country.

South Korea did not escape the heightened volatility in emerging markets near the Fed's meeting earlier in February where it opted to continue tapering its bond-buying programme.

However, South Korean markets stabilised in a matter of days with the won steadily recouping losses sustained after the Fed's decision, and analysts believe Asia's fourth-largest economy will remain steady.

Analysts believe this won't happen until late this year when the country's negative output gap is expected to close.