The Bank of Korea’s monetary policy committee, slated to meet Friday, is widely expected to leave the base interest rate unchanged at a record-low 1.5 percent for an 11th straight month in May, surveys showed.

A Chosun Ilbo poll shows that 12 out of 15 analysts and experts expect no change in the borrowing cost, while the other three see a cut as likely. 

In another poll of 12 securities companies, conducted by Yonhap News, 11 predicted a freeze, while NH Investment & Securities alone voted for a reduction.

“Heavy on the agenda for the BOK’s monetary policymakers this week is not interest rates. It is how the central bank should cooperate with the government’s drive to recapitalize policy banks,” said Yoon Yeo-sam of Mirae Asset Daewoo Securities.

The BOK and the Finance Ministry are discussing ways to provide capital buffers to state-run Korea Development Bank and Export-Import Bank of Korea which are heavily exposed to troubled shipping and shipbuilding industries.

An task force comprising officials from BOK, Finance Ministry, Financial Services Commission and more are currently studying how to recapitalize the two policy banks.

BOK Gov. Lee Ju-yeol voiced caution against the ideas to have the central bank directly inject funds into the state-run lenders, stressing that the BOK money should be used under the principle of loss minimization.

Loans are a better option, Lee said.

Friday’s meet will be the first interest-setting session for four of the BOK’s seven monetary policymakers who joined the board late last month.

By Lee Sun-young (milaya@heraldcorp.com)