BoK minutes: herd mentality cause of jittery won
The Monetary Policy Committee of the Bank of Korea decided to maintain the base rate at 2%, minutes of its 10 June meeting, published Tuesday showed.
Members agreed that momentum in the global economy was continuing, although downside risk remained due to the eurozone's fiscal problems.
Perceived geopolitical risks on the Korean peninsula led one member to recommend closer monitoring of domestic financial markets.
Recent volatility in the won-dollar exchange rate and the flight of foreign portfolio funds were caused by "herd behaviour," committee members said.
"The central bank should wait and see how the global financial market unrest will progress before taking pre-emptive measure to adjust interest rates," members said.
Click here to read the minutes
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