The Bank of Korea held interest rates in February as expected.

South Korea’s central bank held rates steady at 1.25 per cent in line with a median of economists’ estimates compiled by Bloomberg. The decision keeps rates at the level they were cut to in June, the only adjustment made in 2016.

The Korean won was up 0.1 per cent against the dollar at Won1,141.15.

Ahead of the announcement, analysts at Moody’s said the country’s high level of private debt poses a risk to financial stability and reduces the likelihood of further easing.

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