Yonhap Seoul, 11 dec 11 south Korean bank (ECB) monetary committee plenary meeting, decided to benchmark interest rates at 2.00%. August and October this year, the central bank cut its benchmark interest rate 0.25%, respectively, and the central bank believe the effect of the policy and economic situation remains to be seen.

Central bank believes that consumption, investment and the real economy in the central bank adjusted the benchmark interest rate after about 6 to 12 months to appear the effects of it. And because of low interest rates and the government to relax in view of the real estate financial regulation, including the housing mortgage loan of commercial Banks, household debt soared, rental prices, these factors also bring pressure to the central bank to cut interest rates again.

Market is generally believed that if the central bank to cut interest rates, time may be in the first quarter of next year, this is because the federal reserve (Fed) or in the middle of next year after raising policy rates, put an end to a third round of quantitative easing program (third), so the central bank cut decision before then, can relieve the pressure on rate cuts on the financial markets may lead to. In January, the central bank will release expected revised economic growth and real GDP in the fourth quarter of 2014 indicators, such as if the judgment is necessary to continue to take looser monetary policy, the central bank may cut interest rates.

The bank of Korea in July 2012 and October will be the benchmark interest rate to 3.00% and 2.75% respectively, again in May to 2.50% last year, in August and October respectively by 0.25% this year. (after)

The bank of Korea held 11 monetary committee plenary meeting, the picture shows the scene of the meeting. (yonhap)