Hey there! Did you know that South Korea’s central bank just made an important decision about money? 💰 Let’s find out what that means!
On Thursday, South Korea’s central bank decided to keep its key interest rate the same at 2.75%. But what does that mean?
Well, the central bank is like the country’s big piggy bank. It helps control how much money is available and how much it costs to borrow money.
An interest rate is like the extra money you pay when you borrow money from someone, or the extra money you earn when you save! If the rate is high, borrowing costs more. If it’s low, it’s cheaper to borrow.
By keeping the interest rate the same, the bank thinks the economy is doing okay right now. It wants things to stay steady.
Why is this important? Because it affects how much your parents might pay on their home loan or how much you could earn from a savings account!
Isn’t it cool how these decisions can impact everyone’s money? 💵
Stay tuned to see what happens next in the world of money and banks! 🏦
Reference(s):
South Korea's central bank keeps key rate unchanged at 2.75%
cgtn.com
