SEOUL, Jan 16 Reuters South Korea39;s central bank governor said on Thursday that the most important factor determining the health of Asia39;s fourthlargest economy in the next few months was whether recent political turmoil would stabilise.

Previously, the biggest variable was U.S. monetary and trade policy. Now, more than that, the biggest factor determining the economy is whether the political process proceeds stably, as we all want, in the next few months, Bank of Korea Governor Rhee Changyong told a news conference.

That is why a normalisation of the political process is way more important than lowering interest rates a month earlier or later, said Rhee, speaking after the Bank of Korea unexpectedly held policy interest rates steady at 3.00 on Thursday.

The policy decision is the first since President Yoon Suk Yeol39;s attempt to impose martial law in early December triggered the country39;s biggest political crisis in decades. The turmoil prompted the government to cut its 2025 economic growth forecast to 1.8 from 2.2.

Rhee also said the decision not to cut rates reflected a need to support the won which in part has been weakening due to political reasons.

The central bank governor said, however, that the political event that took place on Wednesday provided support to the won, apparently referring to the arrest of impeached President Yoon.

Yoon39;s arrest the first of a sitting president was fairly orderly amid fears violence could flare as more than…