Korea cuts interest rates to record low

The Bank of Korea unexpectedly cut interest rates to a record low of 3.25 per cent on Thursday 11 November, moving its policy focus to growth from inflation.

The rate cut sent local government bond prices soaring and helped stock prices recoup early losses.

The Bank of Korea's seven-member monetary policy committee cut the overnight call rate target by a quarter of a percentage point to 3.25 per cent, the fourth cut since May last year.

"The economy is on a downward trend overall as consumption