Bank of Korea holds key interest rate at 1.25%

South Korea’s central bank stood pat on interest rates on Thursday amid heightened geopolitical tensions on the Korean peninsula.

The Bank of Korea held its 7-day repo rate at 1.25 per cent, where it has been since the bank cut the key interest rate by 25 basis points in June 2016.

The decision was in line with expectations, as every economist among the dozens surveyed by both Reuters and Bloomberg had predicted the bank would leave rates unchanged.