South Korea leaves key interest rate unchanged 

(MENAFN) South Korea's central bank left its key interest rate at a record low Thursday amid international sovereign debt concerns and as the institution prepares for a leadership change, Bloomberg reported.

The Bank of Korea said it kept the benchmark seven-day repurchase rate at 2 percent. The decision came at the last monetary policy meeting chaired by outgoing Gov. Lee Seong-tae.

The bank's monetary policy committee painted a largely positive picture of South Korea's economy, saying in a statement it continues to recover amid rising exports and a steady increase in domestic demand.

The bank has come under consistent political pressure from the government to keep the rate low. Minister of Strategy and Finance Yoon Jeung-hyun told reporters that it was too early to raise borrowing costs.

The bank slashed the benchmark rate six times from October 2008 to battle the global economic downturn. The bank lowered the rate to its current level in February 2009.