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Bank of Korea holds rates for 13th straight month

The Bank of Korea
Bloomberg/Contributor | Bloomberg | Getty Images
The Bank of Korea

South Korea's central bank held interest rates steady for a 13th consecutive month on Thursday, while most analysts see the bank raising rates as soon as next quarter on expectations for rising inflation amid sustained economic recovery.

The Bank of Korea's monetary policy committee left its base rate unchanged at 2.50 percent, a media official said without elaborating. Governor Lee Ju-yeol is due to hold a news conference from 11:20 a.m. (0220 GMT)

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The 30 analysts surveyed by Reuters before the meeting were unanimous in forecasting the central bank would hold its policy rate steady in June, while a large majority predicted the Bank of Korea would hike rates when it next moves them.

The central bank expects growth in Asia's fourth-largest economy to reach 4.0 percent this year from 3.0 percent last year and inflation to quicken to 2.1 percent from 1.3 percent in 2013.

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