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Bank of Korea Governor Rhee Chang-yong set to explain the surprise interest rate decision

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Bank of Korea Governor Rhee Chang-yong is set to hold a press conference at approximately 0210 GMT.

The backdrop to this:

South Korea’s central bank surprised markets on Thursday by keeping its policy interest rate steady, as it assessed the effects of last year’s consecutive rate cuts and aimed to bolster the won, which has recently dropped to a 15-year low against the U.S. dollar.

The Bank of Korea maintained its benchmark rate at 3.00%, defying the expectations of most economists.

  • Only seven out of 34 analysts surveyed by Reuters predicted this outcome, while the majority had anticipated a 25-basis-point reduction.

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