BOK not to raise call interest rates in Aug

The Bank of Korea said that it would not raise the benchmark short-term interest rates or overnight call loan rates this month.

BOK Governor Chon Chol-Hwan said on August 3 that the central bank would maintain the current rate of around 5 percent.

Chon said, "We have decided to keep the rates as they are, based on a judgment that financial market stability is urgent at present although consumer prices are sharply rising."

He said that the nation has some time to cope with inflationary pressures.

"What is important is to create conditions conducive to stable management of macroeconomic policies by swiftly pushing through corporate and financial restructuring under consistent principles since the inflationary trend is materializing," he said.

Referring to the peak of the national economy, Gov. Chon said, "It took 34 months on average for the economy to climb to its peak from the bottom in the past. If we see September of 1998 as the bottom, only 23 months have passed now. I don`t think the economy will reach its peak within this year."