The Bank of Korea “Maintaining a Monetary Policy Relief” / Concerns about negative growth in 22 years.
The Bank of Korea cut the benchmark interest rate to 0.5%.
It is close to the benchmark interest rate lower limit (effective lower limit) that the Korean economy can tolerate.
The Bank of Korea also revised down its forecast for economic growth this year to -0.2% from 2.1%.
At the press conference, Governor Lee Joo-yeol explained, “As the spread of corona19 is expected to be prolonged, the benchmark interest rate has been lowered considering that economic growth and inflation rates will drop significantly.”
