The South Korean central bank is lowering the key interest rate to its lowest ever level due to the damaging impact of the corona crisis on Asia’s fourth economy. Interest will go up by 0.25 percentage point to 0.5 percent.
The Bank of Korea also cut interest rates in March. The country’s economy is expected to contract this year as a result of the corona crisis. A minus of 1.4 percent was already visible in the first quarter of this year compared to the previous period. That is the strongest contraction since the financial crisis. South Korea’s central bank has taken massive support measures against the crisis.