ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

South Korea cuts key rate to record low 0.5% to fight COVID-19 hit

Central bank slashes economic forecast to contraction of 0.2% this year

The 25 basis point cut has lowered the benchmark rate to its lowest point since the Bank of Korea adopted its current policy system in 1999.   © Reuters

SEOUL -- The Bank of Korea cut its key interest rate to a record low 0.5% on Thursday in a bid to cushion economic damage from the coronavirus pandemic.

Underscoring the scope of that hit, the central bank also forecast that gross domestic product will contract 0.2% this year, a sharp reversal from its previous projection for growth of 2.1%.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more