[Market Now] BOK cuts 2016 growth outlook to 2.8%

The Bank of Korea on Tuesday cut its outlook for Korea’s economic growth in 2016 by 0.2 percentage point to 2.8 percent, deviating further from the government’s 3.1 percent forecast and joining private forecasters in lowering growth projections.

Inflation will be 1.2 percent this year, also 0.2 percentage point lower than its previous projection of 1.4 percent, BOK Gov. Lee Ju-yeol said in a news conference that followed the bank’s decision to hold the base rate steady at 1.5 percent. 

“The base interest rate is at a level still supportive of economic recovery,” Lee said.

By Lee Sun-young (milaya@heraldcorp.com)