Economics
Bank of Korea Warns Economic Growth Is Poised to Drop Below 3%
- Lee's comments come as BOK is set to revise outlook in April
- The ruling party has suggested BOK could purchase more bonds
Lee Ju Yeol.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Bank of Korea Governor Lee Ju Yeol warned Wednesday that economic growth for 2016 is poised to fall below 3 percent and said the impact of further interest-rate cuts may be limited.
The comments come amid a change in the BOK’s board and speculation of additional rate cuts given the ruling party’s request for the bank to follow the lead of Japan and Europe’s central banks to purchase more bonds. Korea’s government bond yields fell to the lowest level in more than a month on Wednesday.