Bank of Korea finally cuts base interest rate... 1.25% → 0.75% (Update)

US Fed Cuts Interest Rate to 0%, Bank of Korea Also Lowers Rates
Bank of Korea Holds 'Third Emergency Monetary Policy Committee' Following 2001 and 2008

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Bank of Korea announced on the 16th that it held an emergency Monetary Policy Committee meeting and lowered the base interest rate by 0.50 percentage points from the existing annual rate of 1.25% to 0.75%.

This significant cut was made to minimize the economic impact caused by the novel coronavirus infection (COVID-19). As a result, the base interest rate dropped sharply into the 0% range. The Bank of Korea is treading a path it has never taken before. This decision will take effect from the 17th.

The emergency Monetary Policy Committee was originally expected to be held around the 17th to 18th, but the U.S. Federal Reserve (Fed) used an additional emergency rate cut, lowering its base rate to near zero, which appears to have accelerated the Bank of Korea's rate cut.

The Bank of Korea has only held emergency Monetary Policy Committee meetings to cut rates twice before: in September 2001 (0.50 percentage point cut) immediately after the '9/11 terror attacks' and in October 2008 (0.75 percentage point cut) during the financial crisis.

Meanwhile, Bank of Korea Governor Lee Ju-yeol will hold a press conference around 6 p.m. on the same day. The conference will be conducted via live broadcast on YouTube.

This content was produced with the assistance of AI translation services.