[AP/Yonhap News Photo]
South Korea's central bank froze its prime interest rate at 1.25 percent, acting against the US Federal Reserve which raised a key interest rate.
The Bank of Korea's rate was kept steady at a record low level for the sixth consecutive month to stimulate growth in Asia's fourth-largest economy.
The US Federal Reserve raised the key rate by a quarter of a percentage point to a target range of 0.5 percent to 0.75 percent, citing better job data and potentially higher growth of inflation. It also signaled three rate hikes in 2017.
South Korean financial officials expressed concern that the US rate hike would increase financial market volatility and encourage investors to avoid risks.
"A rapid rise in global interest rates is likely to increase uncertainties at home and abroad, Vice Finance Minister Choi Sang-mok said at a meeting of financial and economic officials.
However, he played down any fatal impact on South Korea's economy, in tandem with experts who said financial markets have already reflected a rake hike.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
