(MENAFN- QNA) South Korea's central bank on Wednesday lowered its economic growth and inflation outlook for this year and next year, citing a weaker-than-expected recovery and a lack of growth momentum.
The Bank of Korea (BOK) cut its growth forecast for the year to 3.5% from 3.8%, also trimming its outlook for next year to 3.9% from 4%. The previous forecast was released in July, according to South Korea's (Yonhap) News Agency.
The revised outlook for next year factors in ongoing policy efforts, with the policy impact accounting for 0.2 percentage point of the total figure.
The data comes after the BOK's monetary policy committee lowered the base rate by a quarter percentage point to 2%, citing slowing growth, inflationary pressure that is weaker than anticipated and feeble sentiment among economic agents.
The move marked the second rate cut this year as Asia's fourth-largest economy is struggling to prop up domestic demand and property transactions.
The central bank, meanwhile, slashed its inflation outlook for this year to 1.4% from 1.9%, citing a prolonged weakening of oil and agricultural product prices. It trimmed its inflation outlook for next year to 2.4% from 2.7%.
The country's current account surplus, which accounted for 6.1% of the country's gross domestic product, is expected to take up a smaller portion going forward.
The portion is expected to fall to the high 5% range this year and the mid-4 percent range next year, according to the central bank.
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