Anchor: The Bank of Korea has slashed next year's growth forecast to two-point-eight percent. In its monthly policy meeting on Thursday, it also decided to maintain the key rate for the fourth month in a row amid concerns about spiking household debt.
Our Kim In-kyung has more.
 
Report: The South Korean central bank has cut the nation's growth forecast for next year by one-tenth of a percentage point to two-point-eight percent.
 
Bank of Korea(BOK) Governor Lee Ju-yeol announced the reduction on Thursday following the bank's monthly monetary policy meeting, in which the central bank left rates unchanged.
 
The BOK had lowered its growth projection for 2017 to the two-percent range from three percent in July, but pushed it down further three months later.
 
The bank maintained this year's growth estimate at two-point-seven percent.
 
However, it said growth could be lower as it hasn't factored in the global sales suspension of Samsung Electronics' Galaxy Note 7 smartphones.
 
South Korea's growth appears to be stuck at the two-percent level amid weak exports and ongoing restructuring in the shipping and shipbuilding industries. 
 
Nevertheless, the BOK kept the key rate unchanged at one-point-25 percent. 
 
The BOK's monetary policy board has kept the rate steady for four consecutive months since slashing it to the current level in June.
 
The central bank seems to be concerned that lowering rates further to stimulate the economy could instead undermine it due to rapidly rising household debt.
 
Household debt increased 54 trillion won in the first six months of this year to one-point-257 quadrillion won as of June.
 
The government has introduced measures to restrain household loans, but they have fallen short.
 
A possible increase in U.S. interest rates this year also appears to have persuaded the BOK to freeze rates.
Kim In-kyung, KBS World Radio News.