Only hours after the Reserve Bank of New Zealand cut interest rates unexpectedly the Bank of Korea has followed suit, slashing its key policy rate by 0.25% to 1.5%.
The decision, seen as a line-ball call by financial markets, is the fourth rate cut delivered by the BoK in the past 12 months.
Sluggish economic growth, along with an outbreak of Middle East respiratory syndrome (MERS) late last month, are the likely factors that led to today’s policy easing.
BoK governor Lee Ju-yeol is scheduled to hold a press conference shortly to explain the decision.
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