MNI POLICY: BOK Keeps Base Rate Unchanged at 1.25%

     TTOKYO (MNI) - The Monetary Policy Board of the Bank of Korea left the Base

Rate unchanged at 1.25% on Friday as the bank continues to monitor the impact of

previous rate cuts and the easing of trade frictions.

     The BOK decision was in line with market expectations following the pickup

in December's exports, which fell 5.2% year on year but were an improvement from

a 14.3% drop in November and a 14.7% fall in October.

     The central bank continues to monitor exports, mainly of IT-related goods,

following the trade deal between the U.S. and China.

     The next policy meeting is scheduled on Feb. 27.

     The BOK will likely maintain its easing bias as its economy and inflation

rate remain weak, but the bank is unlikely to cut its policy rate in the short

term.

     The BOK cut its base rate to 1.25% in October, 2019, after also cutting in

July.

     At 1.25%, the Base Rate now matches the historical reached between

September 2016 to October 2017, and the bank is reluctant to further cut the

benchmark to a fresh all-time low.

     A statement released by the BOK said: "Based on currently available

information the Board considers that the pace of global economic growth has

continued to slow with the ongoing sluggishness in trade. The global financial

markets have been generally stable in line mainly with progress in the US-China

trade negotiations."  

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$]