South Korea’s central bank sharply cut its economic growth forecasts for this year and next after trimming interest rates for the second time this year to shore up Asia’s fourth-largest economy on Thursday, its governor said.
Bank of Korea Governor Kim Choong-Soo
The Bank of Korea cut this year’s economic growth forecast to 2.4 percent from 3.0 percent set in July and that for next year to 3.2 percent from 3.8 percent, Governor Kim Choong-soo told reporters.
The announcement came after the central bank interest rates for the second time in four months on Thursday, as expected, to nurture Asia’s fourth-largest economy through a global slowdown now dragging on for an extended period.
The Bank of Korea’s monetary policy committee cut its base rate by 25 basis points to 2.75 percent, a media official said without elaborating. Governor Kim Choong-soo is expected to hold a news conference from 11:20 a.m. (0220 GMT).
Many analysts expect the Bank of Korea to stay on hold for a considerable period unless the conditions significantly worsened, as the economy is seen recovering gradually and as it wants to save the policy room for a worse time.
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