Pursuits
Bank of Korea Holds Key Rate at Record Low, Cuts Growth Forecast
- Follows surprise move to reduce borrowing costs last month
- Governor Lee says monetary policy to remain accomodative
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South Korea’s central bank held its benchmark interest rate at a record low on Thursday while cutting its projection for growth and inflation amid uncertainty to the economic outlook.
The seven-day repurchase rate was left unchanged at a record low 1.25 percent, as forecast by all 20 economists in a Bloomberg survey. The central bank lowered its estimate for gross domestic product expansion this year to 2.7 percent, from an April projection of 2.8 percent. It trimmed its view on consumer price gains to 1.1 percent from 1.2 percent.