Economics
Bank of Korea Holds Rate at Record Low; Cuts GDP Forecast
- Central bank now projects growth of 2.5 percent this year
- Some economists see further rate cuts ahead as growth slows
Bank of Korea headquarters in Seoul.
Photographer: Jeon Heon-Kyun/EPAThis article is for subscribers only.
South Korea’s central bank left its key interest rate unchanged for a seventh month on Friday, even as it cited a weakening recovery in cutting its 2017 growth forecast.
The Bank of Korea said exports are likely to continue improving, thanks to a strengthening global economic recovery, but noted deteriorating sentiment at home and slowing economic growth in the fourth quarter of last year. It cut its forecast for gross domestic product this year to an expansion of 2.5 percent, from 2.8 percent projected in October.