Markets are surprised by South Korea’s move to decrease its main policy rate to a record low, a step that aims to support the economy as expectations of a Fed interest rate hike grow dimmer this June and to respond to increasing pressure to moderate policies and stimulate growth. The Bank of Korea dropped its base rate by a quarter of a percentage point to 1.25%, the first cut rate of the bank within a year.
The decision to cut rates was undivided and was a preemptive measure to mitigate the increasing risks to growth in the coming second quarter of the year, said Bank of Korea Governor Lee Ju-yeol. He cited the slowdown in exports, weak local demand and corporate reorganization that are dependent on growth. The material has been provided by InstaForex Company – www.instaforex.com
Markets are surprised by South Korea’s move to decrease its main policy rate to a record low, a step that aims to support the economy as expectations of a Fed interest rate hike grow dimmer this June and to respond to increasing pressure to moderate policies and stimulate growth. The Bank of Korea dropped its base rate by a quarter of a percentage point to 1.25%, the first cut rate of the bank within a year.
The decision to cut rates was undivided and was a preemptive measure to mitigate the increasing risks to growth in the coming second quarter of the year, said Bank of Korea Governor Lee Ju-yeol. He cited the slowdown in exports, weak local demand and corporate reorganization that are dependent on growth.
The material has been provided by InstaForex Company – www.instaforex.com
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