Flu alarm triggers Korea's interest rate cut
Korea's central bank has cut its official cash rate in the wake of the deadly Middle East Respiratory Syndrome (MERS) outbreak.
Korea’s central bank has cut its official cash rate in response to public fears over the deadly Middle East Respiratory Syndrome (MERS) outbreak.
The Bank of Korea (BoK) slashed its rates to a record low 1.5% in a bid to offset the potentially harmful economic effects of the virus, which has so far claimed nine lives in Korea.
The BoK announced the cut without elaboration but a news conference has been scheduled later today.
The cut aims to minimise the negative impact MERS will have on the Korean economy, because of consumer fears and of production freezing.
“The BOK is trying to be more pre-emptive in taking action this time than it was after the Sewol ferry accident [in which many children died] last year,” Citigroup economist Chang Jae Chul told Bloomberg.
This is the fourth reduction in the benchmark interest rate since August last year and the seventh since the BoK embarked on its easing cycle three years ago.
Jason Walls
Thu, 11 Jun 2015
Thu, 11 Jun 2015
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Flu alarm triggers Korea's interest rate cut
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