Economics

Bank of Korea Unleashes Surprise Rate Cut as Trade Risks Grow

There’s Not a Lot of Room to Cut in South Korea, Says Goldman Sachs’s Kwon
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The Bank of Korea unexpectedly cut its benchmark interest rate as it slashed economic growth and inflation forecasts, joining a growing number of central banks acting to shore up their economies.

The BOK cut the seven-day repurchase rate to 1.5% from 1.75%. It now expects the economy to grow 2.2% this year, versus 2.5% projected in April, and inflation to rise 0.7%, versus 1.1% previously.