한은, 올해 성장률 2.0%, 내년 2.3%로 하향조정...기준금리는 1.25% 동결 S. Korea's GDP to grow 2.0% in 2019, 2.3% in 2020; Bank of Korea freezes key interest rate at 1.25% in November
The nation's central bank cut Korea's growth projection for this year and the next.
Meanwhile, as widely expected, the BOK decided to keep interest rates steady.
Yoon Jung-min helps us look beyond the digits.
Amid slowing exports and investment, the Bank of Korea revised downward the country's GDP growth to 2-percent for this year from its earlier projection of 2-point-2 percent.
The central bank has also cut the projection for next year to 2-point-3 percent from its earlier prediction of 2-point-5 percent.
But that's still higher than this year's projection as the bank expects the economy and trade starting to pick up from next year.
"We have lowered this year's growth rate by point-two percentage-points from the projection in July,... mainly because of a sluggish recovery in exports and investment. Next year, the growth is expected to slightly rise compared to this year, due mainly to better global trade and the semiconductor market recovery."
The central bank also predicted this year's consumer inflation to be zero-point-4 percent due mainly to lower oil and agricultural product prices.
However, it is expected to reach 1-percent next year due to lower downside pressure from the supply side.
At its final monetary policy board meeting of 2019,... the Bank of Korea on Friday kept its benchmark interest rate unchanged at 1-point-25 percent for November.
The all-time-low rate remained steady following earlier rate cuts by 25-basis points each in July and October this year.
The central bank has kept the key rate steady to "wait and see" what the effects are of the previous rate cuts.
"We have the record-low key rate of 1-point-25 percent. Still, there is a possibility that the central bank might cut the rate once more early next year if the situation doesn't get better,... but it would be difficult for the bank to do that."
Exports continued to fall for the 11th straight month in October,... due to falling semiconductor shipments and slowing global trade due to the U.S.-China trade spat.
Inflation remains far below the central bank's target of 2 percent.
The low inflation has added to concerns over possible deflation,...but the central bank and the government expects an upbeat sentiment next year,... dismissing concerns over possible deflation.
"Having held the key rate steady and lowered the GDP growth rate for 2019 and growth forecast for 2020,... the Bank of Korea said it will closely monitor developments, both inside and outside the country,... including the U.S.-China trade negotiations.
Yoon Jung-min, Arirang News."
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