BOK CUTS KEY INTEREST RATE TO 1.25% IN OCTOBER

As widely expected... Korea's central Bank has lowered its key interest rate at its monetary policy board meeting today... aiming to revitalize the nation's sluggish domestic economy.
The rate is now back to the record-low level... last seen in 2017.
Kim Hyesung at the BOK for us.
The Bank of Korea on Wednesday cut its benchmark interest rate to 1-point-25 percent to support the domestic economy.
That's the same as its all-time-low rate, last seen between June 2016 and November 2017.
The decision follows a rate cut in July and a rate freeze in August.
The BOK chief said slowing global growth and the U.S.-China trade dispute are affecting domestic growth.
"Investment remains sluggish, while consumption growth is weak. Exports fell sharply on slowing global economic growth. We forecast domestic growth to fall below July's outlook on the current global economic growth trend, global trade and geopolitical risks."
The central bank had forecast local economy to grow by 2-point-two percent in 2019 back in July.
That's already down from its previous forecast of 2-point-six percent in January, 2-point-five percent in April.
Exports, which account for about half of Korea's GDP, dropped near 12 percent on-year in September, falling for the tenth consecutive month on slowing global trade and falling chip exports.
Korea's consumer price index fell point-four percent on-year in September, way below the central bank's two percent target.
"Inflation has been hovering at around zero percent recently on seasonal effects due to lower agricultural product prices this year. But it also comes from the demand side, and consumer demand is unlikely to rebound soon as economic growth is slowing down. This pressured the bank to cut rates to prevent a fall into a prolonged stage of low consumer prices."
With the benchmark interest rate lowered by 25 basis points this month, commercial banks' deposit interest rates and lending rates are expected to follow suit.
"In making its future monetary policy decisions, the Bank of Korea says it will closely analyze the effects of the latest two rate cuts on the local economy, monitor the U.S.-China trade dispute and global economic data.
Kim Hyesung, Arirang News..



Source: Arirang News
Copyright Arirang News. All rights reserved, reprinted with permission by Dailymotion
.

Related News about "BOK cuts key interest rate to 1.25% in October" news from other sites: (news similarity rate is shown on left.)

7%
Norman noodle shop conjuring interest By Dave CatheyMade a trip to Norman last week to find out whether rumors were true that Yummy Noodles on NW 23 Street had competition for the best noodle house in the 405 diningscape.The sho.. NewsOK.com >>
6%
Earnest offers low-interest personal loans, and looks at more than just your credit score when you apply Earnest offers fixed-rate personal loans that can be used for debt consolidation, home improvements, etc.  Unlike some other lenders, Earnest reviews factors other than credit score in maki.. BusinessInsider >>
8%
FreightWaves NOW: October Shipments Are Down YOY ​​​​​​In this episode, Meteorologist Nick Austin talks about more snowfall hitting the Rockies, FreightCaster Kyle Cunningham delivers the carrier update presented by PowerFleet, and Marke.. benzinga.com >>
7%
October consumer prices up 3.1pc Overall consumer prices rose by 3.1 percent year-on-year last month, 0.1 percent smaller than the corresponding increase in September. Netting out all effects of the SAR government's one-off relief me.. TheStandard.com.hk >>
5%
Roma Showing Interest In Arsenal Target Dejan Kulusevski Roma are considering signing Arsenal and Manchester United linked teenage midfielder Dejan Kulusevski in January... InsideFutbol.com >>
China: China , officially the People's Republic of China , is a sovereign state located in East Asia. It is the world's most populous country, with a population of over 1.35billion. The PRC is a single-party state governed by the Communist Party, with its seat of government in the capital city of Beijing.[
- China Wikipedia
June: June is the sixth month of the year in the Julian and Gregorian calendars and one of the four months with a length of 30 days. June is the month with the longest daylight hours of the year in the Northern Hemisphere and the shortest daylight hours of the year in the Southern Hemisphere.[citation ne
July: July is the seventh month of the year in the Julian and Gregorian Calendars and one of seven months with the length of 31 days. It was named by the Roman Senate in honor of the Roman general, Julius Caesar, it being the month of his birth. Prior to that, it was called Quintilis.
Wednesday: Wednesday is the day of the week between Tuesday and Thursday. According to international standard ISO 8601 adopted in most western countries it is the third day of the week. In countries that use the Sunday-first convention Wednesday is defined as the fourth day of the week. It is the fourth day o
Bank: A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital
April: April is the fourth month of the year in the Julian and Gregorian calendars, and one of four months with a length of 30 days.
August: August is the eighth month of the year in the Julian and Gregorian Calendars and one of seven months with a length of 31 days.
September: September is the ninth month of the year in the Julian and Gregorian Calendars and one of four months with a length of 30 days.
January: January is the first month of the year in the Julian and Gregorian calendars and one of seven months with the length of 31 days. The first day of the month is known as New Year's Day. It is, on average, the coldest month of the year within most of the Northern Hemisphere and the warmest month of t
November: November is the eleventh month of the year in the Julian and Gregorian Calendars and one of four months with the length of 30 days. November was the ninth month of the ancient Roman calendar. November retained its name when January and February were added to the Roman calendar.