The Bank of Korea (BOK) on Thursday cut its benchmark interest rate to a record low, joining the growing list of central banks around the world that have resorted to monetary easing to spur their economies.
The South Korean bank cut its base rate a quarter of a percentage point to 1.75 percent, a move authorities hope will help the nation’s industries such as electronics, automobiles and machinery that have suffered a slowdown in exports.
South Korea’s economic growth and inflation this year will be lower than expected, officials said.
“We took into consideration that it (rate cut) was necessary to revive recovery momentum,” BOK Governor Lee Ju-yeol told a press conference, Associated Press reported.
In January, BOK had revised its economic growth outlook for the nation to 3.4 percent from 3.9 percent and downgraded its inflation projection to 1.9 percent from 2.4 percent.
The central bank is expected to unveil in April a further revision in economic forecasts.
Elsewhere in the region, Thailand’s central bank announced a rate cut late Wednesday.
– Contact us at [email protected]