World Economy

No Rate Cut in S. Korea

 No Rate Cut  in S. Korea No Rate Cut  in S. Korea

Chief of Bank of Korea (BOK), South Korea’s central bank, showed reservations toward an additional rate cut on Friday, citing improved consumer sentiment and low risks of falling into deflation. “The rate was lowered last month to preemptively respond to downside risks caused by a significant contraction in sentiment of economic agents. Consumer confidence has recovered considerably despite weak corporate investment sentiment,” BOK Governor Lee Ju-yeol said after the rate-setting meeting. The BOK froze the benchmark interest rate at 2.25% after cutting the rate by a quarter percentage point in the previous month.