Bank of Korea leaves key rate at 3.25 percent

September 7, 2011 - 9:05 PM
South Korea Interest Rate

Kim Choong-soo, governor of the Bank of Korea, lifts the gavel as he presides over a meeting to decide a benchmark call rate at its headquarters in Seoul, South Korea, Thursday, Sept. 8, 2011. South Korea's central bank froze its benchmark interest rate for a third month as global economic uncertainty outweighed concerns over accelerating inflation.(AP Photo/Ahn Young-joon)

SEOUL, South Korea (AP) — South Korea's central bank froze its benchmark interest rate for a third month as global economic uncertainty outweighed concerns over accelerating inflation.

The Bank of Korea said Thursday it kept its base rate at 3.25 percent at a monthly policy meeting.

The BOK has raised the key borrowing cost five times since July of last year from a record low of 2 percent.

South Korea's consumer price index rose to a three-year high of 5.3 percent in August from the same month last year after gaining 4.7 percent in July.

Inflation in Asia's fourth-largest economy has exceeded 4 percent for eight months.

The rate decision came amid global economic worries centered on continued high U.S. unemployment and sovereign debt troubles in Europe.