S.Korea keeps interest rate at 2.75 percent

South Korea's central bank kept its key interest rate unchanged at 2.75 percent Thursday for a second straight month as the economy shows signs of recovering from a year-long slump.

Bank of Korea (BOK), which cut the rate in July and October, left the benchmark seven-day repo rate unchanged at 2.75 percent for December.

South Korea's exports posted back-to-back gains through November, while inflation remained below or near the bottom end of the central bank's two to four percent target band for the ninth consecutive month.

Analysts say the fourth largest economy in Asia is likely to stage a modest rebound in the fourth quarter, helped by government stimulus and an apparently nascent recovery in China, South Korea's largest export market.

Seoul has unveiled two stimulus packages since June, totalling 13.1 trillion won ($1.22 billion), or one percent of gross domestic product.

The South Korean economy grew a mere 0.1 percent in the third quarter and the bank warned the country was likely to miss its full-year growth forecast of 2.4 percent.