The Bank of Korea, as widely expected, kept the benchmark interest rate steady at one-point-five percent.

During a monetary policy meeting on Tuesday, the central bank froze the key rate for a second time since raising it by a quarter of a percentage point for the first time in six years and five months last November.

If the U.S. Federal Reserve marks up its interest rate next month as anticipated, U.S. rates will outdo South Korea’s for the first time in some ten years. 

A higher U.S. interest rate doesn’t immediately lead to capital outflow but is likely to become a burden on South Korea’s economy if the gap between the rates widens. 

Following the rate decision, the bank said in statements that the economy is sustaining its trend of solid growth, effectively maintaining its growth forecast for the year at three percent. 

It said U.S. protectionist policies and restructuring in the auto industry are downside risks, referring to General Motors Korea, which announced that it would close a factory by May. 

It said it would be cautious about additional hikes, while closely monitoring growth and price trends.