Bank of Korea surprisingly cut benchmark interest rate by 25 bps

Despite woes of 'stoking household borrowing'.

According to BBVA, the Bank of Korea (BOK) cut its benchmark interest rate by 25 bps to 2.50%.

The move was a surprise to most analysts who had expected the BOK to stay on hold after a better than expected Q1 GDP outturn and concerns about further stoking household borrowing, which remains high.

Here's more from BBVA:

In its accompanying policy statement, the BOK cited weak domestic growth, a sluggish global economy, influence of the yen weakening, and geopolitical risks. It also noted subdued inflation (1.2% y/y in April), which is well below the official target range of 2.5%-3.5%.

Despite headwinds, we expect growth to pick up during the course of the year, to 2.7% in 2013. On this basis, we expect the BOK to stay on hold, but we would not rule out further cuts if growth remains weak.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia