Call Rate Likely to Be Frozen in Jan.

Despite signs of inflationary pressure, the central bank is likely to freeze its key interest rate for January to wait and see how the incoming administration molds its economic policy, analysts said Sunday.

Bank of Korea (BOK) Governor Lee Seong-tae and his six fellow policymakers are scheduled to meet Thursday to set the January target for the call rate, the interest charged on overnight inter-bank loans.

Last month, the bank held the rate steady for four straight months at a six-year high of 5 percent, citing turbulence in financial markets worldwide.

Consumer prices rose 3.6 percent in December from a year earlier due to an increase in prices of oil and industrial products, putting pressure on the BOK to reign in inflation. The December increase was the highest in 38 months.