Korean Central Bank Keeps Rate At 2 Percent

South Korea's central bank kept its key interest rate at 2 percent. The Bank of Korea avoided raising the discount rate due to concerns about slowing Korea's economic recovery. The decision to keep rates low was applauded by economists worldwide. Central banks in the United States and Europe have kept interest rates near historic lows to free up credit and reduce borrowing costs. As the global economy improves, an interest rate hike is expected by nations worldwide. Central banks worldwide are waiting for the fragile global economy to get on sure footing. Investors should look for a slow increase in interest rates in the second half of the year as banks worldwide tighten credit markets and remove liquidity from the system.