(MENAFN- QNA) South Korea's central bank is expected to freeze the key interest rate in September as it monitors the impact of last month's rate cut and the government's stimulus measures, a survey showed Tuesday.
The Bank of Korea (BOK) lowered the base interest rate by a quarter percentage point to 2.25 percent last month in a widely-expected move to join the government's efforts to spur the economy, but a clear majority of market watchers didn't expect a rate cut for a second month in a row, according to South Korean news agency Yonhap.
According to the survey conducted by the Korea Financial Investment Association, 96.5 percent of 113 bond experts forecast the BOK will maintain the interest rate at the current level in the upcoming meeting slated for Friday.
BOK Gov. Lee Ju-yeol has remained cautious over the possibility of a further cut within this year, saying any monetary decision will take into consideration the latest rate cut and the government's efforts to boost consumer sentiment.
If the stimulus package remains stuck in the parliament and economic data points to a weaker-than-expected recovery, the central bank may face pressure from the government to take more easing measures, experts said.
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