The Bank of Korea cut its benchmark interest rate to the lowest level since 2010 to bolster demand and price gains in Asia’s fourth-largest economy.
Governor Lee Ju Yeol and his board lowered the seven-day repurchase rate to 2 percent from 2.25 percent, the central bank said in a statement in Seoul today. Twelve of 22 economists surveyed by Bloomberg News forecast the move, while nine projected no change.
The cut is the second in two months and follows calls from Finance minister Choi Kyung Hwan for the BOK to ensure monetary policy is in “harmony” with government efforts to boost growth. Governor Lee will deliver the bank’s latest economic update later today, including any change to its growth and inflation forecasts.