Bank of Korea keeps rate at record low 2 percent

South Korea's central bank has left its key interest rate at a record low for a 16th straight month as the country's economic recovery strengthens.

The Bank of Korea announced Thursday that it kept the benchmark seven-day repurchase rate at 2 percent.

The BOK slashed the rate six times from October 2008 to help battle the global financial meltdown. It lowered the borrowing cost to its current level in February of 2009.

Asia's fourth-largest economy has recorded five straight quarters of growth after contracting amid the worldwide downturn.

The bank announced last week that South Korea's economy grew faster than originally estimated in the first quarter.

And the government said Wednesday that the unemployment rate fell sharply in May to a seven-month low.