한은, 역성장 전망 올해 성장률 -1.3%…기준금리 0.5% 동결<br /><br />South Korea's central bank has downgraded its 2020 growth outlook to negative 1-point-3 percent from its previous forecast of a point-two percent decline.<br />It's also left the key interest rates steady and kept the door open for more monetary stimulus to support an economy hard hit by the coronavirus pandemic.<br />Eum Ji-young has more.<br />South Korea's central bank has slashed its growth forecast for the local economy this year as it braces for a surge in COVID-19 cases.<br />At the monetary policy board meeting for August on Thursday, the Bank of Korea forecast the country's economy to shrink one-point-three percent this year,... which is a downward revision from its previous estimate in May of a point-two percent contraction.<br />"When compared to the previous prediction in May we have lowered the outlook because South Korea's exports have been slower than expected and the country is once again seeing a surge in infections."<br />The cut also reflected no improvement in private consumption and huge job losses.<br />The bank's governor added that the prediction was based on the premise that the government will maintain the current level two social distancing measures.<br />South Korea's economy has only contracted twice before: in 1980 when GDP growth was minus one-point-six percent, and in 1998, when it was negative five-point-one percent.<br />Despite downgrading its growth outlook, the Bank of Korea on Thursday kept its all-time low interest rate steady at half-a-percent. Experts point to the overheated real estate market as the reason not to cut the rate further.<br />"If the interest rate is lowered further, liquidity will surge and there are problems associated with that. For that reason, the central bank is likely to keep the rate at zero-point-five percent."<br />First Vice Minister of Economy and Finance Kim Yong-beom said volatility in the financial market will be greater than ever depending on the development of the outbreak.<br />He added that the government will prepare thoroughly in case of a prolonged outbreak and will go all out to strengthen the weak links in South Korea's economy.<br />Eum Ji-young, Arirang News.<br />
