S.Korea freezes policy rate at 2 percent

South Korea's central bank on Thursday put interest rates on hold at a record low to wait and see how the two rate cuts made in the second half of this year would affect the economy amid lingering expectations for additional monetary easing.

Bank of Korea (BOK) Governor Lee Ju-yeol and six other policy board members decided to freeze the benchmark seven-day repurchase rate at a record low of 2 percent. The bank lowered the rate by a quarter percentage point in October and August each.

The rate freeze was widely expected as market watchers predicted the BOK taking a wait-and-see stance after the two rate cuts in the recent three months. According to a Korea Financial Investment Association survey, 99 percent of the respondents expected the rate freeze.