Bank of Korea cuts base rate by 50 bps to 2½%

By Richard Connell

New York, Jan. 9 - The Monetary Policy Committee of the Bank of Korea lowered its base rate by 50 basis points to 2½% at its meeting on Friday, according to a press release issued by the bank.

The committee noted that the domestic economy of Korea continues to slow considerably as a result of the ongoing global financial crisis, as reflected in lower consumption, investments and exports.

The committee also pointed out that inflation has been decreasing, due to the fall in international oil prices and the downturn in the domestic economy.

Anticipating a continued decline in inflation, the committee cut the base rate by 0.5%, hoping to improve monetary lending.

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