in today's meeting South Korea's central
bank decided to keep its key rate at one
and a quarter percent despite the
effects of the coronavirus on the
economy but because of the outbreak it's
cut its economic growth forecast for
this year
Aram ji young has the details the Bank
of Korea on Thursday kept its benchmark
rate at one point to five percent for
February it has kept its key rate frozen
since October last year when it lowered
the rate by 25 basis points to support
the domestic economy the rate is
currently at an all-time low
the Central Bank was widely expected to
cut its benchmark interest rate on
Thursday in a bid to offset the economic
impact caused by the corona virus
outbreak but despite the worsening
business sentiment the BOK decided to
freeze the interest rate as lower rates
have risks of their own spanked of Korea
governor ETR said at a press briefing on
Thursday that the bank decided to hold
the rate steady as the contraction of
local demand and production is largely
due to uncertainties over the Cova 19
outbreak rather than economic factors
the decision is also a reflection of the
worries over the country's growing
household debt levels also announced on
Thursday the central bank forecast the
local economy to grow by 2.1 percent
this year down 0.2 percentage points
from what it had forecast last November
the downgrade reflects contracted
business activities both at home and
abroad due to the corona virus outbreak
the Central Bank's Monetary Policy Board
noted in a statement that the country's
economic growth rate has slowed down it
said due to the spread of Covey's 19
consumption has contracted and exports
have slowed during the press briefing
Lee said that there is a possibility
that the South Korean economy could
contract in the first quarter of this
year due to the economic hit from the
outbreak he added that the bank of
Korea's forecasts assumed that the
outbreak will peak in March and then
settle down but the central bank kept
its economic growth forecast for 2021 at
2.4 percent on ji-yong Arirang news
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