South Korea central bank cuts rates to record low 1.25%, sooner than expected

[SEOUL] South Korea's central bank cut its policy rate by 25 basis points to a record-low 1.25 per cent on Thursday slightly sooner than expected as inflation has failed to accelerate and exports are far from a rebound.

A Bank of Korea media official announced the monetary policy committee's decision to lower the base rate without elaborating. Governor Lee Ju Yeol is due to hold a news conference from 11.20am (0220 GMT).

It was the first rate cut since the bank last lowered rates in June 2015.

Just four out of 23 analysts surveyed by Reuters had forecast the central bank would lower the rate, but a majority of those who saw a June hold forecast rates would be cut in July.

REUTERS