SEOUL (Reuters) – South Korea’s central bank kept interest rates unchanged on Thursday, dashing expectations for a cut, even as the rapid spread of the coronavirus in Asia’s fourth-largest economy threatened to derail growth. FILE PHOTO: Women wearing masks to prevent contracting the coronavirus walks out of a shop at Dongseong-ro shopping street in central Daegu, South Korea February 21, 2020. REUTERS/Kim Hong-Ji/File Photo The Bank of Korea’s policy board held the base rate KROCRT=ECI steady at 1.25%, a decision that was predicted by only 10 of 26 economists surveyed by Reuters. The central bank cut rates in July and October last year. A majority of economists had expected the BOK to cut rates to head off the impact of the virus. Governor Lee Ju-yeol is due to hold a press conference at 0220 GMT, after the bank announces revised growth forecast and inflation outlook. The Korean won KRW= sharply gained against the dollar after the rate decision while three-year treasury bond futures March contract KTBc1 fell, as a cut was priced in. “A key difference today, compared to SARS and MERS epidemic, is that policy ammunition is relatively limited,” said Ma Tieying, a DBS economist who sees at least… Read full this story
- Trump, South Korea’s Moon look for way to curb North Korea nuclear weapons
- Is justice out of reach for an American teacher murdered in South Korea?
- North Korea abruptly withdraws staff from South Korea liaison office
- Reduced US-South Korea exercises still draw North’s ire
- South Korea’s burned-out millennials choose YouTube over Samsung
- Global Economy Slows, Pushing Europe’s Central Bank to Make a Surprise Move
- Wide-Ranging K-Pop Scandal Rocks South Korea
- South Korea picks Seoul for 2032 Olympic bid
- South Korea considering sending special envoy to North Korea
- Japan cancels port call by warship in South Korea amid row
South Korea central bank keeps rates on hold despite coronavirus risks have 308 words, post on www.reuters.com at February 27, 2020. This is cached page on GameMaz. If you want remove this page, please contact us.