The Central Bank of South Korea decided today to keep the seven days repo rate at 2.00% for the ninth straight month meeting forecasts. The bank aimed at supporting economic recovery before raising borrowing costs.

However, the Korean bank may start tightening monetary policy by 2010 as governor lee said that keeping rates too low for too long is not good for the economy. However, The South Korean economy expanded 2.9% in the third quarter and it was one of few major economies managed to avoid technical recession.