BOK slashes key rate by 0.25% 'surprise' to 3% annual rate

The Bank of Korea held its last Monetary Policy Committee meeting today (28th) and cut its benchmark interest rate.

Following last month, interest rates fell by 0.25%p this month, lowering to 3% per annum.

It is the first time in 15 years that interest rates have been lowered in succession since 2009, when the global financial crisis erupted.

The Bank of Korea assessed that the growth trend weakened as the recovery of domestic demand slowed down to export growth.

He also stressed that inflation is stable at around 1%, and household debt is slowing, and that it is important to mitigate downside risks to the economy now.