The Bank of Korea said Tuesday that it could consider reducing the adjustment range for the nation’s key interest rate if deemed necessary.
 
The central bank unveiled the view that was part of materials submitted for the National Assembly’s inspection of government agencies.
 
The central bank has, so far, raised or cut the nation’s key interest rate by a quarter percentage point. Its latest remark suggests that it could adjust the rate by a smaller range if considered necessary. However, the bank was quick to stress that it will consider such a possibility when a more cautious rate adjustment is necessary, including when the rate nears zero or when uncertainties mount over policy influences or side effects.
 
The bank has, in the past, been negative about reducing the adjustment range, saying that it would be difficult to expect intended outcomes.
 
The bank has slashed the benchmark interest rate by a quarter percentage point a total of eight times between July 2012 and June of this year.
 
The nation’s key interest rate, which once stood at three-and-a-quarter percent in the first half of 2012, currently stands at a record low one-and-a-quarter percent.