S. Korea's BOK Seen Cutting Rate to 22 in October

10/15/2014 8:39:26 AM

(MENAFN- Qatar News Agency) Seoul October 15 (QNA) - South Korea's central bank lowered the base rate Wednesday to 2% this month to give a much-needed boost to the government's stimulus initiative that has proved to be lacking so far.

The rate cut comes two months after the Bank of Korea (BOK) lowered the policy rate by a quarter percentage point for the first time in 15 months to support Finance Minister Choi Kyung-hwan's measures aimed at propping up property trade and consumption.

With the rate cut the second this year South Korea's base rate fell to match the record low of 2% that was maintained from February 2009-June 2010.

In another context import prices fell for the seventh consecutive month in September.

The Bank of Korea said Wednesday that the import price index in September stood at 93.04 a drop by 1.2% from August according to Korea's (KBS WORLD) website.

It is the lowest level in five years and five months since May 2009.

The central bank said although the value of the won fell against the dollar during this period the international oil price fell by more than 5% contributing to the decline in overall import prices.

The export price index also turned negative for the first time in three months falling by 0.2% in September from August. (QNA)

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