South Korea keeps interest rates low

South Korea's central bank left interest rates at a record low on Thursday, bowing to weak domestic demand and uncertainty over an anticipated slowdown in China's economy.
But Bank of Korea Governor Park Seung painted a broadly optimistic outlook, saying the economy was on a steady recovery track and a slowdown in China would ultimately be positive, as it would make its growth more sustainable.
The Bank of Korea kept the overnight call rate target at 3.75 percent, marking the 10th month in a row rates have stayed flat and in line with a Reuters poll of 10 economists this week.
"There is no reason to raise interest rates in a hurry in Korea, especially when a potentially negative impact from China is poised to slow the export-driven economy", said Kim Seng-hyun, an economist at Shinyoung Securities Co.