Concerns about tensions over North Korea's October 9 nuclear test were the main factor behind the South Korean central bank's decision to hold interest rates steady on October 12, minutes from the meeting released on Tuesday showed.
The Bank of Korea's board members were almost equally divided over whether growth in Asia's third-largest economy was sustained, while the domestic housing market was not a prime concern for them, minutes from the meeting showed.
"The geopolitical concerns following North Korea's nuclear test are viewed as putting an expanded downside risk on the (South's) economy," one member was quoted as saying by the minutes, which do not name the members.
North Korea, with which the South remains technically at war after their 1950-1953 war ended in an armed truce, carried out its first underground nuclear test in early October and the United Nations Security Council later imposed sanctions on it. All the six monetary policy committee members cited in the minutes wanted to keep the overnight call rate target unchanged at 4.5 percent for the second consecutive month. The minutes did not contain remarks by the seventh member. The seven-member committee, chaired by Bank of Korea Governor Lee Seong-tae, also held the rate target steady the following month. Details about the November 9 meeting will be released in late December.
Comments
Comments are closed.