the nation’s central bank cut growth
projection for this or in next meanwhile that’s widely expected the BOK decided
to keep interest rates steady eun-jung mean El busto beyond the digits amid slowing exports and investment the
Bank of Korea revised downward the country’s GDP growth to two percent for
this year from its earlier projection of 2.2 percent the central bank has also
cut the projection for next year to two point three percent from its earlier
prediction of 2.5 percent but that’s still higher than this year’s projection
as the bank expects the economy and trade starting to pick up from next year
we have lowered this year’s growth rate by 0.2 percentage points from the
projection in July mainly because of the sluggish recovery in exports next year
the growth is expected to slightly rise compared to this year you may need to
better global trade and the semiconductor market recovery the
central bank also predicted this year’s consumer inflation to be 0.4 percent do
you mainly to lower oil and agricultural product prices however it is expected to
reach 1 percent next year due to lower downside pressure from the supply side
at its final monetary policy board meeting of 2019 the Bank of Korea on
Friday kept its benchmark interest rate unchanged at one point to five percent
for November the all-time low rate remained steady following earlier rate
cuts by 25 basis points each in July and October this year the central bank has
kept the key rate steady to wait and see what the effects are of the previous
rate cuts we have director Loki rate of 1.25 percent still there is a
possibility that the central bank might cut the rate once more early next year
if the situation doesn’t get better but it would be difficult for the bank to do
that exports continue to fall for the eleventh straight month in October due
to falling semiconductor shipments and slowing global trade due to the us-china
trade spat inflation remains far below the central bank
target of 2% the low inflation has added to concerns over possible deflation but
the central bank and the government expects an upbeat sentiment next year
dismissing concerns over possible deflation having held a key rate steady
and lower the GDP growth rate for 2019 and growth forecast for 2020 the Bank of
Korea said it will closely monitor developments both inside and outside the
country including the us-china trade negotiations in German Arirang news