Bank of Korea holds key rate at record low, cuts growth forecast

Seoul

SOUTH Korea's central bank held its benchmark interest rate at a record low on Thursday while cutting its projection for growth and inflation amid uncertainty in the economic outlook.

The seven-day repurchase rate was left unchanged at a record low 1.25 per cent, as forecast by all 20 economists in a Bloomberg survey. The Bank of Korea (BOK) lowered its estimate for gross domestic product (GDP) expansion this year to 2.7 per cent, from an April projection of 2.8 per cent. It trimmed its view on consumer price gains to 1.1 per cent from 1.2 per cent.

Bank governor Lee Ju Yeol, who surprised markets in June with a rate cut, said Thursday's decision was unanimous and that monetary policy will remain accommodative. He said the cut in this year's growth forecast …