Korean rates on hold amid uncertainty

The Bank of Korea's rate-setting monetary policy committee kept the benchmark uncollateralised overnight rate at 5% despite an increase in inflation.

The central bank said that the pick-up in consumer price inflation was down to rising oil prices. The pace of domestic growth was set to continue quickening as a result of the robust export marking and rising levels of private consumption.

But the central bank warned that a pick-up in growth was far from certain: "There is a high degree of uncer