S Korea cuts interest rate for first time since October

South Korea unexpectedly trimmed its benchmark interest rate by 0.25 percentage points Thursday — the first cut for seven months aimed at boosting an economy hit by slumping exports.

SEOUL: South Korea unexpectedly trimmed its benchmark interest rate by 0.25 percentage points Thursday — the first cut for seven months aimed at boosting an economy hit by slumping exports.

The move announced by the central Bank of Korea (BOK) leaves the key policy rate at 2.50 per cent, following two similar cuts last year in July and October.

South Korea’s export-reliant economy — the fourth largest in Asia — has been badly hit by shrinking global demand, with overseas shipments falling 1.3 per cent last year.

The overall economy expanded just 2.0 per cent in 2012 — the slowest growth in three years.

See on www.channelnewsasia.com

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