South Korea’s central bank keeps rates unchanged at record lows

South Korea’s central bank kept the policy interest rate unchanged at record lows on Thursday.

A move that was expected counting on last month’s emergency easing to support the economy as it reels from the coronavirus pandemic.

Bank of Korea slashed interest rates by 50 basis points to a fresh low of 0.75 percent on March 16, in its largest policy easing since the global financial crisis, and has subsequently flagged a move to less orthodox policy.

South Korea’s economy is heading for a contraction in the first half after the country’s manufacturing activity fell at its fastest pace in 11 years in March.