South Korea cuts rates as Mers clouds outlook

Seoul

A DEADLY outbreak of Middle East respiratory syndrome (Mers) forced South Korea to cut interest rates on Thursday in the hope of softening the blow to an economy already beset by slack demand, as authorities reported 14 new cases and a 10th fatality.

Worry about the disease has been reflected across the region with dozens of suspected cases being tested in Hong Kong, though none confirmed, and many thousands of people cancelling trips to South Korea.

The outbreak, with 122 cases and 10 deaths, is the largest outside Saudi Arabia and began last month when a 68-year-old South Korean businessman brought the disease back from a trip to the Middle East.

He was diagnosed with Mers on May 20, and all subsequent infections have been traced …