Call rate to remain unchanged at 5%

The Monetary Board of the Bank of Korea (BOK) decided Friday to leave intact the overnight call rate at the current level of 5 percent.

``Consumer prices are continuing to record a steep rise of 4 percent a month for three months in a row since January and market jitters hang over the unstable Korean won-U.S. dollar exchange rate,`` said an official of the board. ``We decided to freeze the overnight call rate, mainly due to rises in consumer prices resulting from the unstable exchange rate,`` he said.

The official explained that market conditions for corporate financing have improved somewhat but still some large corporations are facing credit risks as the won`s value and interest rates keep on moving wildly according to domestic and foreign economic changes.

He said that the board will implement flexible monetary policies while monitoring changes in economic conditions inside and outside the country. ``We will exert efforts to improve financing conditions for domestic companies,`` he said.