South Korea freezes interest rates at record low of 1.75%

South Korea's central bank on Friday froze its benchmark interest rate at a record low of 1.75 percent, keeping a wait-and-see mode for two straight months amid expectations for further rate cuts.

Bank of Korea (BOK) Governor Lee Ju-yeol and six other monetary- policy board members decided to keep the 7-day repurchase rate on hold. The bank cut the rate by a quarter percentage point in March after lowering it by 25 basis points in August and October last year each.

The rate freeze was in line with market expectations as the central bank was forecast to see the effect of previous rate cuts amid improving economic indicators.