Bank of Korea turns focus to stability threats after rate cut
Shift in language indicates financial stability concerns
The Bank of Korea today cut its headline interest rate to a historic low, but hinted at growing concerns over financial stability risks.
The central bank's monetary policy committee voted in favour of a 25-basis point cut, bringing the rate to a record low of 2% – on a par with the levels during the global financial crisis. One member of the seven-strong board dissented.
In its economic forecast, also published today, the Bank of Korea said growth had fallen short of expectations. If the
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