South Korea cuts policy rate, as expected, to prop-up economy

A man works on a tree at Myeongdong shopping district in Seoul
A man works on a tree at Myeongdong shopping district in Seoul, South Korea, November 30, 2017. REUTERS/Kim Hong-Ji

October 16, 2019

SEOUL (Reuters) – South Korea’s central bank cut its policy interest rate for the second time in three months on Wednesday, as expected, to support a slowing economy and address mounting deflationary pressures.

The Bank of Korea’s monetary policy board trimmed the base rate <KROCRT=ECI> by 25 basis points to 1.25%, a media department official said. BOK Governor Lee Ju-yeol is due to hold a news conference from 0220 GMT.

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.

(Reporting by Choonsik Yoo and Joori Roh; Editing by Sam Holmes)

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