Slow pace of recovery raises speculation of further monetary policy loosening by BoK

The Bank of Korea (BoK) held its policy rate steady on Thursday, following a rate cut last month. Thursday's rate pause was expected by all 16 economists polled by Bloomberg ahead of the meeting. 

However, the decision to leave interest rates on hold at a record low of 1.75% was not unanimous, with one board member voting for a cut. The slow pace of recovery has raised speculation of further monetary policy loosening.

"We think concerns about Korea's high and rising household debt level will keep the BoK from cutting rates much further." - said Capital Economics in a report