South Korea's central bank cut its policy interest rate for the second time...
SEOUL - South Korea’s central bank cut its policy interest rate for the second time in three months on Wednesday, as expected, to support slowing economic growth and address mounting deflationary pressures.
The rate cut follows a July easing and was in line with forecasts in a Reuters survey of 31 analysts. The new rate matches a record low seen until late 2017. The BOK’s move comes amid a wave of monetary easing globally, including by the U.S. Federal Reserve, as the world economy loses steam. The Fed is expected to deliver its third rate cut this year later this month.
In its regular update on the global economic outlook released late on Tuesday, the International Monetary Fund slashed South Korea’s 2019 and 2020 economic growth forecasts by 0.6 of a percentage point each to 2.0% and 2.2%, respectively.
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