South Korea’s central bank cut growth and inflation forecasts while keeping the nation’s key interest rate unchanged as it monitors the impact of record-low borrowing costs.
Asia’s fourth-largest economy will expand 3.1 percent this year and prices will rise 0.9 percent, Bank of Korea Governor Lee Ju Yeol said Thursday. Both were lower than forecasts made as recently as January.
With inflation easing to the slowest pace since 1999, pressure may increase on Lee to consider another reduction in the seven-day repurchase rate. It now stands at 1.75 percent, after the BOK last month joined about 30 counterparts around the world in a wave of monetary easing this year.