BOK leaves rates unchanged at 3.25 pct

The Bank of Korea (BOK) left its benchmark interest rate unchanged at 3.25 percent on Thursday, keeping its rate freeze stance for a sixth straight month, following an unexpected rate hike in June, due to lingering concerns over Europe's debt crisis.Governor Kim Choong-soo and monetary policy board members decided to freeze the 7-day repo rate at 3.25 percent this month after raising the rate by 25 basis points (bps) in January, March and June each. The BOK has lifted the borrowing costs by a total of 125 bps in five steps since July last year.The decision was in line with market expectations as most experts predicted the rate freeze amid the lingering external uncertainties at home and abroad. "The BOK will maintain a neutral policy stance for the time being. The bank recognized the high degree of uncertainties in future economic trends. We forecast that the BOK will hold the rate steady at 3.25 percent in the next six months," Southeast Asia's largest lender DBS said in a report before the rate decision.