South Korea’s top central banker says he expects slow but positive economic growth for the trade-dependent country this year despite worldwide shocks wrought by the coronavirus. Bank of Korea Governor Lee Ju Yeol’s assessment Thursday came after the bank held its policy rate at 0.75 percent despite calls for lower borrowing costs. The bank’s monetary policymakers cited a need to wait for the effect of financial tools that had already been employed to spur the economy. “We forecast the South Korean economy to manage positive growth this year, but it would be difficult for the rate of growth to reach 1 percent,” Lee said. “Ultimately, (economic) flows and aspects will depend on how the COVID-19 situation develops.”The Bank of Korea had lowered its annual growth forecast for the economy from 2.3 percent to 2.1 percent in February.

Source: The Standard April 09, 2020 05:48 UTC