S Korea lowers policy rate amid worry about trade row with Japan

CNC
Added On July 20, 2019

Bank of Korea cut its benchmark seven-day repurchase rate by 25 basis points to 1.5 percent on Thursday.
 
It was not in line with market expectations.
 
It marked the first rate cut in around three years since June 2016.
 
The central bank reversed its tightening monetary policy direction this month amid the rising concern about trade friction with Japan.
 
Japan slapped stricter control early this month on its export to South Korea of materials vital to production of memory chips and display panels, which influences the manufacturing of smartphones, TVs and other tech products.
 
Japan's export curbs were forecast to add uncertainties to the already-struggling export of South Korea.
 
Export accounts for about half of the export-driven economy, and it kept sliding for the seventh consecutive month through June.