Bank of Korea keeps rate on hold amid inflation

SEOUL, South Korea (AP) — South Korea's central bank froze its key interest rate Tuesday despite rising inflation as it monitors potential threats to the global economy — including Japan's massive earthquake.

The Bank of Korea kept its benchmark base rate at 3 percent at a monthly policy meeting, in line with expectations, after having raised it in two of the previous three months to fight gains in consumer prices.

The bank, however, warned that inflation remains a threat and used hawkish wording in its statement accompanying the decision to suggest further rate hikes in coming months.

South Korea's consumer price index increased 4.7 percent in March from the year …