Skip to content
Subscriber Only

Won Jumps Most in Four Months After First BOK Cut Since May 2013

South Korea’s won rose the most since April, while three-year government bonds fell, after the central bank lowered benchmark borrowing costs for the first time since May 2013 to revive economic growth.

The Bank of Korea cut its seven-day repurchase rate to 2.25 percent from 2.5 percent, as predicted by 14 of 18 analysts surveyed by Bloomberg. Four had forecast no change. The decision wasn’t unanimous, with one board member opposing a reduction, Governor Lee Ju Yeol said at a briefing in Seoul, adding the move will boost the effect of government spending. Domestic demand recovery is insufficient, the BOK said in a statement.