Home > business, south korea > South Korea Cuts Rate to Record 2% as Economy Shrinks

South Korea Cuts Rate to Record 2% as Economy Shrinks

The Bank of Korea cut its benchmark interest rate to a record-low 2 percent to revive an economy headed for the first recession in more than a decade as exports and spending cool.

Governor Lee Seong Tae and his board pared the seven-day repurchase rate by a half point in Seoul today, the sixth reduction since early October. The decision was expected by six of nine economists surveyed by Bloomberg.

Finance Minister Yoon Jeung Hyun took office this week and pledged to step up stimulus spending after forecasting the economy will contract 2 percent this year and lose about 200,000 jobs. Central banks from Malaysia to Taiwan have lowered rates and Asia’s governments unveiled more than $685 billion in fiscal stimulus to revive their export-dependent economies.

complete article @ Bloomberg

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