Economics
Bank of Korea Warns of Weaker Growth After Cutting Rates Again
- Central bank trims key rate to 1.25% to match record low
- Governor says BOK has room to go lower, no need for QE now
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South Korea’s central bank warned that economic growth would be weaker than forecast after cutting its policy rate for the second time this year as a global downturn pummels exports and weighs on prices.
The move comes amid a wave of rate cutting by central banks around the world to shore up growth and highlights the sense of urgency at the Bank of Korea to prop up a sputtering economy, especially with consumer prices falling. The decision to lower the main policy rate to 1.25%, matching a previous record low, was forecast by 21 of 25 analysts surveyed by Bloomberg.