The Bank of Korea(BOK) slashed its key interest rate by a half of a percentage point to deal with the economic ramifications of the novel coronavirus pandemic.
The central bank held an emergency monetary committee meeting on Monday and cut the policy rate to zero-point-75 percent from one-point-25 percent. It is the first time the nation’s benchmark rate dipped below one percent.
The move came after the U.S. Federal Reserve cut its benchmark interest rate by a full percentage point to a range of zero to zero-point-25 percent on Sunday, making its second emergency rate cut in less than two weeks to help the United States deal with fast-spreading virus.
A BOK emergency meeting aimed at a rate cut was arranged only twice previously. The last one was following the September 11, 2001 terrorist attack on the U.S., when the bank cut the rate by zero-point-five percent. It also slashed the key rate to zero-point-75 percent in October of 2008 amid the global financial crisis.