Pursuits
Korea Unexpectedly Cuts Rate to Support Debt Restructuring
- Only one of 18 economists in survey correctly picked move
- Bond yields had been hinting at action in coming months
South Korea Cuts Rates to Support Debt Restructuring
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South Korea’s central bank unexpectedly cut the benchmark interest rate to a new record low Thursday, citing growing risks to the economy including slowing global trade and the government’s push to restructure indebted companies.
The decision to cut the seven-day repurchase rate to 1.25 percent, which was unanimous, was projected by only one of 18 economists surveyed by Bloomberg. While Goldman Sachs Group Inc. was the sole forecaster predicting a cut at this meeting, Citigroup Inc., HSBC Holdings Plc, and Nomura Holdings Inc. were among those seeing a reduction in the next couple of months.