Bank of Korea keeps rate steady as resurging virus cases threaten recovery
In an effort to sustain its economic recovery from the pandemic amid resurging coronavirus cases, the Bank of Korea maintained its current record-low interest rate.
The Bank of Korea held on to its 0.5% seven-day repurchase rate on Thursday, a move that was anticipated by many analysts.
South Korea’s economic outlook as of now remains bright, as exports and extra fiscal spending support the economy. However, a worsening coronavirus spread and vaccines setback are starting to make the outlook hazy, citing that the recovery may not spread more broadly across the economy.
On the bright side, Korea’s economy is backed by its export activities to lift its recovery. Employment figures rose consequently and consumers are now optimistic for the first time since the beginning of the pandemic.
The latest cases surge nearing 700 on Thursday threatens to stall the booming employment and consumption figures, and entrench a K-shaped recovery.