South Korea central bank holds rates at record low

Loan assistance: People walk by BoK headquarters in Seoul. The central bank has been working in tandem with the government to extend liquidity to businesses hit by the health crisis but is wary of rising debt and high property prices. — AP

SEOUL: South Korea’s central bank kept its key policy rate on hold, avoiding the risk of fuelling runaway property prices amid government efforts to tamp down on demand in the sector.

Governor Lee Ju-yeol also painted a bleak outlook for the trade-reliant economy due to weaker exports, suggesting the Bank of Korea (BoK) was likely to hold back its monetary policy ammunition for a long-haul fight against the coronavirus pandemic.