Name: BOK holds benchmark interest rate at 1.25% despite virus fears
Uploaded: 2020-03-16T19:54:02.000Z
Duration: 2 min 15 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

In today's meeting, South Korea's central bank decided to keep its key rate at one and 1/4 percent despite the effects of the Corona virus on the economy.

But because of the outbreak, it's cut its economic growth Forecast for this year are armed.

The Bank of Korea on Thursday kept its benchmark rate at 1.25% for February.

It has kept its key rate frozen since October last year when it lowered the rate by 25 basis points to support the domestic economy.

The rate is currently at an all time low.

The central bank was why they expected to cut its benchmark interest rate on Thursday in a bid to offset the economic impact caused by the Corona virus outbreak.

But despite the worst thing, business sentiment the be okay decided to freeze the interest rate as lower rates have risks of their own.

Bank of Korea Governor E J ER said at a press briefing on Thursday that the bank decided to hold the rate study as the contraction of local demand and production is largely due to uncertainties over the cove in 19 outbreak rather than economic factors.

The decision is also a reflection of the worries over the country's growing household debt levels also announced on Thursday.

The central bank forecast the local economy to grow by 2.1% this year, down 0.2% points from what it had forecast last November.

The downgrade reflects contracting business activities both at home and abroad due to the Corona virus outbreak.

The central bank's Monetary Policy Board noted in a statement that the country's economic growth rate has slowed down, it said, due to the spread of cove in 19 consumption has contract ID and exports have slowed.

During the press briefing, Lee said that there is a possibility that the South Korean economy could contract in the first quarter of this year due to the economic hit from the outbreak.

He added that the Bank of Korea's forecasts assumed that the outbreak will peak in March and then settle down.

 But the central bank kept its economic growth forecasts for 2021 at 2.4%. 