S. Korea cuts growth outlook, holds key rate at record low

South Korea's consumer prices rose only 0.9% from a year earlier during the first half of this yearSouth Korea’s central bank on Thursday cut the country’s growth outlook and kept the key interest rate unchanged at a record low as exports sputters and demand slumps. The Bank of Korea (BOK) said it expects the economy to expand 2.7 percent this year, just three months after cutting its forecast to 2.8 percent. Britain’s shock decision to leave the EU last month added to uncertainty for the South’s export prospects, bank governor Lee Ju-Yeol said.

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