South Korea Central Bank Holds Rates, as Expected

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The Bank of Korea held interest rates steady on Thursday, possibly matching the analysts' consensus view that the cut in May was the last one for the year because South Korea's economy is recovering.

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

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The 22 analysts surveyed by Reuters before the meeting were unanimous in forecasting the central bank would hold its policy steady after having cut the rate in May for the first time in seven months in a surprise move.

Inflation is below the bottom end of the central bank's target range and the economy is growing at a far slower pace than its long-term trend, but most analysts in the survey predicted no further rate cut at least this year.