Presidential office expresses disappointment over BOK’s rate freeze

The presidential office expressed disappointment over the Bank of Korea's decision to freeze the key rate at 3.5 percent Thursday, citing concerns over its impact on domestic consumption. "The interest rate decision lies within the authority of the Monetary Policy Board, but it is disappointing from the perspective of boosting domestic command," a senior presidential official said in a rare remark on the rate decision. The official said the government will announce measures next week to prop up the domestic demand, including ensuring supply of essential goods for the Chuseok holiday. The BOK has kept the policy rate unchanged since February last year but signaled a policy pivot this year amid moderating inflation and a slower-than-expected economic outlook. Source: Yonhap News Agency