Bank of Korea Lowers Interest Rate

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  • TEMPO.CO, Jakarta - The South Korean Central Bank is predicted to lower its interest rates further in June from the current record low. The decision was taken as a result of poor export performance, market observers said Friday, May 29, 2015.

    Nomura International report mentioned that the Bank of Korea (BOK) will lower its benchmark interest rate to 1.5 percent in June 2015 because of the weakening export, which is12.6 percent lower compared to the previous year.

    In addition, South Korean Won domination over Japanese Yen has also weakened the price competitiveness of the country.

    Daeshin Securities forecasted that BOK will lower its interest rates to a new record low of 1.5 percent in June following a 25 basis point reduction earlier in March.