BoK keeps benchmark rate at 1.5%

Bank of Korea opted to keep its benchmark interest rate at a record low of 1.5%. There are various factors cause the Bank to keep its benchmark rate at record low. The U.S. Fed rate hike is likely in December, which may weaken the KRW. 

The household debt of the economy stands at around 84% of GDP and credit demand is continued to be weaker. Moreover, the recent pick up in headline inflation limited the scope for further easing. 

BoK is seemed to be relying on the fiscal side in order to support growth in the near term. Reaction to the announcement was muted with USD-KRW largely unchanged at the 1153 level, says Commerzbank.