To perk up economy, BOK expected to cut interest rate

Home > Business > Economy

print dictionary print

To perk up economy, BOK expected to cut interest rate

The Bank of Korea is likely to cut its base rate to 2.75 percent from 3 percent at its policy meeting slated for Thursday, a report by Standard Chartered Korea said yesterday.

In the report released on Sept. 4, Standard Chartered Korea said prolonged sluggish industrial production and export outweighs recovery pace.

“We admit that domestic demand was quite strong in July activity data, while the near-term inflation outlook seems to be worsening owing to fresh food, oil and grain prices,” wrote Oh Seok-tae, chief economist at Standard Chartered Korea. “But the continued weakness in exports and industrial production alone will justify further monetary easing, as it raises the chances of yet another downward revision of GDP growth forecast.”

China’s recovery will boost Korea’s exports and he expects the trade surplus to remain stable at $2 billion per month for the second quarter, Oh said.

Yonhap

More in Economy

Average selling price of Seoul apartments hits 1 billion won

New legislation on online shopping proposed by FTC

Cash is truly king in time of coronavirus

When settling for a studio apartment is too expensive

Bill creates new rental protections for small businesses

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now