The Bank of Korea today cut its headline interest rate to a historic low, but hinted at growing concerns over financial stability risks.
The central bank's monetary policy committee voted in favour of a 25-basis point cut, bringing the rate to a record low of 2% – on a par with the levels during the global financial crisis. One member of the seven-strong board dissented.
In its economic forecast, also published today, the Bank of Korea said growth had fallen short of expectations. If the