Korea cuts rates as part of expansionary plan

Choinomics becomes political reality as Bank of Korea ignores its own assessment to deliver political rate cut.

Korea cuts rates as part of expansionary plan

Korea’s central bank dutifully delivered a 25bp interest-rate cut on Thursday as part of a “welcoming gift” for the new finance minister, Choi Hyung-hwan.

It is the first rate cut since May last year and reduces the base rate to 2.25%, delivering the easier monetary conditions that Choi says are necessary to boost growth. He has also promised W40.7 trillion of stimulus, including W11.7 trillion extra fiscal spending and a package of structural reforms...

To continue reading, please login or register for free

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...