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BOK cuts key interest rate to 1.25% in October

with hopes of boosting slowing economic
growth and domestic consumption South Korea’s central bank decides to lower
its key rate by a quarter percentage point in line with market consensus
Martinez song starts us off the Bank of Korea on Wednesday cut its benchmark
interest rate to one point two five percent that’s the same as its all-time
lower rate which was seen between June 2016 and November 2017 the central bank
began its easing cycle in July when it slashed the key rate for the first time
in three years and held rates frozen in August citing growing uncertainties over
the ongoing US on a trade dispute and sluggish domestic economy exports in
September plunge neared twelve percent on-year making it the tenth consecutive
month of contraction due to weak global demand and falling chief exports
inflation is also way below the central bank’s 2% target
South Korea’s inflation fell 0.4 percent in September the first time there has
been an annual drop in consumer prices data releases began in 1965 it has
raised concerns that Korea may enter a prolonged period of deflation although
government officials downplayed the risk say the negative figure was a blip due
to higher than usual food prices last year Kim Azam and young news

David Frank