(Bloomberg) -- The Bank of Korea left its key interest rate unchanged, taking a wait-and-see approach after last month’s unprecedented steps to cushion the impact of the coronavirus pandemic.

South Korea’s central bank held the seven-day repurchase rate at 0.75% on Thursday in a move forecast by nine of 17 analysts surveyed by Bloomberg. The rest expected a 25 basis point reduction.

The BOK is taking stock after a flurry of measures last month, including an emergency rate cut to a record low and a pledge to inject unlimited liquidity into the market via repurchase agreements. South Korea’s government is also rolling out stimulus like never before, with a second extra budget lined up.

“While the growth outlook suggests another rate reduction is needed, the 50 basis point emergency rate cut, coupled with lingering concerns about financial imbalance risks among some members, suggest the bar for another rate cut is higher,” Angela Hsieh, an economist for Barclays Bank, wrote in a note before the decision. The central bank will prefer to preserve policy room in case conditions worsen, she wrote.

Yet, with the pandemic continuing to wreak havoc on South Korean economy, the BOK’s pause may be short-lived. About half of the surveyed analysts expected the BOK to ease on Thursday. Among those who forecast the hold decision, several including analysts at Goldman Sachs expect a cut in May.

While virus cases are slowing in South Korea and in China, its largest trade partner, a recovery in global demand is elusive as large parts of the world are at a virtual standstill. South Korea’s government also extended its social-distancing rules as a precaution against a second wave of infections.

Many economists expect South Korea to grow this year at the weakest pace since the Asian financial crisis two decades ago, or even contract. Recent reports show South Korea’s retail sales, confidence, and investment all sliding, and a mild contraction in exports is set to deepen as the pandemic puts global supply chains in disarray and hurts overall demand.

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