SEOUL, South Korea (AP) — South Korean central bank has lowered its key interest rate to a historic low as exports slumped and on worries that the outbreak of the deadly MERS virus could slow the recovery.
Bank of Korea said Thursday that policymakers cut its policy rate by a quarter of a percentage point to 1.50 percent, the second rate cut this year. In March, the bank lowered its key rate and downgraded its growth forecast for Asia’s fourth-largest economy as exports continue to slump.
Exports and imports have dropped during the first five months of this year due to sluggish global demand and a weak Japanese yen that hurt Korean exporters.
There are fears the MERS virus could hurt businesses as travelers cancel trips and people stay home out of fears of contagion.
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