Waiting for Fed action, the Bank of Korea Maintain Interest Rate Policy

The Bank of Korea on Friday its key interest rate unchanged at 1.5% for the 3rd month in a row, as policymakers consider the economic conditions and waiting to see the impact of a possible policy shift the US Federal Reserve.

A slowdown in China so far has limited the demand for Korean exports, with the prospect of a Fed rate hike adds to the uncertainty and market volatility. While four times the decline in interest rates by the BOK since August 2014 has failed to promote growth, with the economy only expanded by 0.3% in the 2nd quarter and inflation held below 1%.

Finance Minister Choi Kyung Hwan this month have also been warned that if China's economic slowdown will bring "enormous impact" of Korea. Who pushed cut its growth forecast for 2016 to 3.3%, while the projection for this year was maintained at 3.1%.