South Korea's central bank on Thursday decided to keep its key interest rate unchanged for May to maintain a balance between rising inflation and the slowing economy.
Bank of Korea (BOK) Gov. Lee Seong-tae announced the decision after a meeting with his six fellow policymakers.
Under the decision, the 7-day repurchase agreement rate, dubbed the base rate, will stand at 5 percent for May.
South Korea's consumer prices rose a higher-than-expected 4.1 percent in April due to soaring oil and grain prices.
Meanwhile, the local currency has fallen more than 8 percent against the U.S. dollar so far this year, adding worries on increasing import prices.
Government reports show that South Korean economy grew 0.7 percent on-quarter in the first quarter, the slowest pace in more than three years, as facility investment dipped amid sluggish domestic demand.
Source:Xinhua
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