The Bank of Korea is expected to slash the
country′s growth rate forecast for this year to the two－percent range at a monetary
policy meeting set for this Thursday. Since April， the central bank has been targeting
growth of three－point－one percent. Economic institutes have released new estimates
ranging from two－point－seven to two－point－nine percent.
Last month， Bank of Korea Governor Lee Ju－yeol said the unfavorable effects of the MERS outbreak
could force them to lower the growth rate forecast.
However， Korea came up with an almost 20 billion U.S. dollar stimulus program to cope
with the impact of MERS and to maintain the nation′s economic growth forecast in the
three percent range. The central bank has already cut its benchmark
interest rate to a record low of one－and－a－half percent， citing the negative impact of the
MERS outbreak. That figure is expected to remain unchanged.