South Korea raises 2017 GDP growth forecast to 2.8% on strong exports

BOK Keeps Key Rate at 1.25

BOK Keeps Key Rate at 1.25

Australia will see July results for its inflation forecast; in June, consumer prices were predicted to have risen 3.6 percent on year.

The Bank of Korea will wrap up its monetary policy meeting on Thursday, highlighting a modest day for Asia-Pacific economic activity.

Lee said the BOK's latest revision did not take into account the extra budget of 11.2 trillion-won (US$9.83 billion) being sought by the government.

On the decision to freeze the rate, the robust growth in macroeconomics at home and overseas was offset by uncertainties such as the geopolitical risks surrounding North Korea, global trade protectionism, as well as possible change in global central banks' monetary policies, Lee said.

"However, the domestic economy is expected to stay on a solid growth path", he said. "But because of the uncertainties overseas and low upward pressure in consumer price inflation, we chose to maintain our wait-and-see approach and monetary easing policy direction".

The central bank has maintained the key interest rate at 1.25 percent, since the BOK lowered the rate by a quarter of a percentage point in June 2016. The rate was lowered to the current level in June previous year. The top central banker recently indicated the need for a rate hike.

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