Bank of Korea Holds Repo Rate at 2.75%

The Bank of Korea held its main policy rate, the 7-day repurchase rate, at 2.75%. South Korea recorded consumer price inflation of 4.1% year on year in January 2011, with producer prices rising 6.2% year on year, whereas the Bank of Korea has an inflation target of 2% to 4%. The pauses in monetary policy tightening by the Bank was not expected by most, and is likely to be a temporary pause.

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