The Bank of Korea(BOK) has kept its benchmark interest rate steady at a record low one-point-25 percent for the second straight month.
 
The central bank announced the rate freeze on Thursday, saying that the South Korean economy is gradually recovering with improved domestic consumption. It predicted that recovery will pick up steam when an extra budget is executed as part of the government’s expansive macroeconomic policy.
 
At the same time, it warned that the nation is still facing persistent economic uncertainties resulting from the ongoing corporate restructuring drive and monetary policy directions in major countries.
 
The BOK said that it will operate monetary policies based on situational changes in major economies, noting a strong Korean won and a bullish domestic stock market, which are spurred by an influx of foreign capital amid a monetary easing trend overseas.
 
It pledged to focus on keeping the economic growth momentum alive and managing the inflation rate within its target level while keeping a close eye on rising household debts.