Bank of Korea cuts policy rate to new record low
Economy expected to grow at slowest pace in over two decades due to Covid-19
South Korea’s central bank cut its policy rate to the record low of 0.5% today (May 28), while forecasting consumer inflation to drop below zero for the year of 2020.
The 25 basis point cut came after the Bank of Korea (BoK) slashed rates from 1.25% to 0.75% in an emergency meeting in March. It was the central bank’s first emergency rate cut since the global financial crisis in 2008.
“The board expects that domestic economic growth will remain sluggish for some time due to the impact of the
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