South Korea's central bank lowers rate amid Japan trade row

July 17, 2019 - 6:52 pm

SEOUL, South Korea (AP) — South Korea's central bank has cut its policy rate for the first time in three years to combat a faltering economy that faces further risks from a heated trade dispute with Japan.

The Bank of Korea on Thursday lowered the key interest rate by a quarter percentage point to 1.50% following a meeting of its monetary policy committee. The bank had hiked the rate by 0.25% points in November and last lowered borrowing costs in June 2016.

The move comes amid an escalating row between South Korea and Japan over Tokyo's move to tighten controls on high-tech exports to its neighbor.