Korea’s central bank cut interest rates for the first time in over three years, its monetary policy board announced today (July 18).
The central bank has also revised down its growth and inflation forecasts for 2019. Official statistics show that the Korean economy contracted by 0.4% in the first quarter of this year.
The board cut the Bank of Korea’s policy rate by 25 basis points to 1.5%.
The central bank said it now expects the Korean economy to expand by 2.2% of GDP this year, down from 2