Lower Bound for Korean Rates Seen at 1% as BOK Meeting Looms

  • Limit could go lower if global economy falters, economists say
  • Central bank is forecast to hold key rate at 1.25% this week

A steady series of interest-rate cuts over the past four years has taken borrowing costs in South Korea to unprecedented levels, raising the question of where the lower limit lies for the central bank’s key policy tool.

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