South Koreas central bank maintained its key interest rate after two back-to-back rate hikes, amid rising geopolitical risks and surging coronavirus infections. The Monetary Policy Board of the Bank of Korea decided to leave its base rate unchanged at 1.25 percent, on Thursday. The bank had raised its key rate by 25 basis points each in November and January. The board today said it will judge when to further adjust the degree of accommodation. Core inflation for items other than food and energy is forecast to stand at 2.6 percent this year and 2.0 percent next year.
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