Bank of Korea chief says political turmoil barred it from cutting rates

Governor hints that could lower rates in February after surprisingly standing pat

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Bank of Korea Gov. Rhee Chang-yong cited the weakening won amid domestic political turmoil as a reason for leaving interest rates unchanged on Jan. 16. (Bank of Korea)

KIM JAEWON, Nikkei staff writer

SEOUL -- The recent political turmoil in South Korea stopped the country's central bank from cutting its key interest rate on Thursday, its chief said, with most board members worried that such a move would have further weakened the nation's currency.

The Bank of Korea's seven-member Monetary Policy Board kept its benchmark rate unchanged at 3% on Thursday with one dissenting vote, surprising markets which had predicted a cut following two previous consecutive reductions.

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