Bank of Korea cuts interest rates as economy fails to recover
- Asian Market
- 6 months ago
The Bank of Korea has slashed interest rates for the first time since 2016 as an increasing concern grips the country’s economy outlook, coupled with the ongoing trade dispute with Japan.
It is also a result of the worst performing first quarter since the 2008 financial crisis and there are no signs of improvement as of yet.
The Bank’s Governor, Lee Ju-yeol said, “Economic circumstances have deteriorated since April.”
“With the rate cut, we took into account the effects from Japan’s trade restrictions.”
The restrictions Mr. Lee is referring to are the exports of chemical shipments, tightened by Tokyo, which are vital to Korea’s semiconductor production.
The Bank of Korea reduced its growth target for 2019 to 2.2% from its previous forecast of 2.5%, lower than the government’s revised forecast of 2.4% to 2.5% as South Korea’s economy grew 2.7% last year.
Source: Smart Trend Team