SEOUL: South Korea's central bank Friday kept its key interest rate unchanged at 3.25 percent for a fifth straight month, in light of the worsening eurozone debt crisis and eased inflation.
The annual inflation rate was 3.9 percent in October, falling below the bank's upper target of four percent for the first time this year.
The slowdown in Europe and the United States is taking its toll on South Korea's export-driven economy.
GDP grew 0.7 percent quarter-on-quarter in July-September, slowing from 0.9 percent in the preceding quarter.
"Given high uncertainty about growth outlooks, the BOK (Bank of Korea) may hold the rate steady for a considerable period of time," Yoon Yeo-Sam, an analyst at Daewoo Securities, told Yonhap news agency.
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