World Economy

BOK Cuts Rate to 4-Year Low

BOK Cuts Rate to 4-Year LowBOK Cuts Rate to 4-Year Low

The Bank of Korea cut its benchmark interest rate to a four-year low as Governor Lee Ju Yeol risks spurring capital outflows in his effort to bolster the economy. The central bank lowered the seven-day repurchase rate to 2% from 2.25%, the second reduction in two months, and downgraded its estimates for growth and inflation. Twelve of 22 economists surveyed by Bloomberg forecast the rate cut, while nine projected no change. Lee warned capital may flow out of South Korea if the interest rate gap with other nations narrows and the won falls, and said countermeasures should be considered.