in today’s meeting the nation’s central
bank decided to keep its key rate path despite Coe v19 impact on the economy
but because of the outbreak the BOK cut its growth forecast for this year here’s
um ji young with a breakdown of the digits 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 the decision is also a reflection of the worries over
the country’s growing household debt levels also announced on Thursday the
central bank forecasts a 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 koban 19 consumption as contracted and exports have slowed Bank
of Korea governor IgE are said in a press briefing that there’s a
possibility that the South Korean economy could contract in the first
quarter of this year due to the outbreak we expect the impact of the disease to
be concentrated in the first quarter so there is a possibility of a negative
growth in the first quarter the vok Lord it’s expected private spending growth in
the first half of the year from 1.9 percent to 1.1 percent on-year but the
central bank raised the figure for the second half of the year from 2.2 to 2.6
percent Lee said that the bank of Korea’s
forecasts assumed that the outbreak will peak in March and then
down the central bank kept its economic growth forecast for 2021 at 2.4 percent
MDM Arirang news

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3 thoughts on “BOK lowers its economic growth forecast to 2.1% while freezing benchmark interest rate”

  1. This is why I watched Arirang news for the last month. North American news is so full of lies and government giving useless information compared to Korea and Singapore

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