South Korean Central Bank Surprises Markets With Interest Rate Hold

The Bank of Korea, South Korea’s central bank, has decided to keep interest rates on hold at 2.25%. The bank said that rate increases down the line would be modest due to global economic uncertainties, notably in the U.S. economy. In a statement, the bank said that the U.S. economy showed signs of a slowdown. “Looking ahead, there exists the possibility of the heightened volatility of economic activity in major countries acting as a risk factor for the global economy,” said the statement.