Bank of Korea kept the key interest rate unchanged at 3.50%. This was even though the inflation rate remained above the target and the uncertainty surrounding the policy decision.
Although global economic growth and inflation decelerated, recessionary fears abated as labor market conditions were favorable and the US labor market and price indicators were better than expected.
Domestic growth has slowed due to weaker private consumption and lower exports; GDP growth is expected to be 1.6% this year.
However, there is a high degree of uncertainty about the outlook.
Consumer price inflation was 5.2 percent in January, higher than in December due to higher electricity and processed food prices.
Inflation is expected to remain at around 5 percent in February.
The Governing Council will maintain the restrictive policy stance for a considerable period.
It will assess the pace of the deceleration of inflation and the changes in monetary policy in the major countries.