January 29, 2020

BOK cuts policy rate to 1.50% amid trade tensions

PUBLISHED : July 18, 2019 - 10:27

UPDATED : July 18, 2019 - 10:27

  • 본문폰트 작게
  • 본문폰트 크게
  • 페이스북
  • 트위터
  • sms

The Bank of Korea (BOK) slashed its policy rate by a quarter percentage point to 1.50 percent on July 18 in a surprise move to help spur growth amid prolonged trade tensions.

The rate cut is the first since November when the central bank raised the rate by 25 basis points to 1.75 percent.

The unexpected rate cut follows seven consecutive months of decline in the country‘s exports, which could face further downward momentum in the future due to Japan’s export curbs on key materials for the production of semiconductors and display panels, both key export items of South Korea.

mid the steady decline in its exports, Asia‘s fourth-largest economy contracted 0.4 percent from three months earlier in the first quarter.


Bank of Korea

BOK Gov. Lee Ju-yeol earlier hinted at a possible rate cut, highlighting the need for what he called “appropriate measures to accommodate changes in economic conditions.”

In a survey conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency, eight of 13 experts polled expected the BOK to keep its policy rate intact in July.

All 13 of them, however, had anticipated the central bank to slash the policy rate to 1.50 percent next month, apparently on a widely accepted outlook that the U.S. Fed will lower its own key rate when it holds its Federal Open Market Committee meeting on July 30-31.

By Park Ga-young and newswires (

  • 페이스북
  • 트위터
  • sms
Herald Corporation|CEO : Kwon Chung Won
Publisher. Editor : Kwon Chung Won
Chief Privacy Officer & Juvenile Protection Manager : Yang Sung-jin
Title : The Investor|Date of registration : 2015.04.28
Company Registration No. 104-81-06004
Mail-Order Business Registration 2016 - Seoul Yongsan - 00590
Huam-ro 4-gil 10, Yongsan-gu, Seoul, Korea
T : +82-2-727-0114|Business info
Gov’t registration No. Seoul 아04099