The Bank of Korea (BOK) left policy unchanged for a fourth month this week, prompting criticism from market watchers who say the central bank must urgently implement monetary stimulus to lift Asia’s fourth-largest economy out of the doldrums.
After leaving the benchmark policy rate at 2 percent on Tuesday, central bank governor Lee Ju-yeol said that interest rate cuts were no longer as effective in impacting the economy.
But with the country on the verge of entrenched deflation, the International Monetary Fund and HSBC are some of the voices calling on the BOK to lower rates in the coming months.
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