# BOK cuts rates to 0.50%, sees biggest GDP contraction since Asian financial crisis, KRW off lows - Forex Crunch

> The Bank of Korea cut its key interest rate by 0.25 percentage points to a record low of 0.50%, as widely expected. It downgraded its 2020 growth forecast to a 0.2% contraction, which would be the sharpest since the 1998 Asian financial crisis, and cut its inflation forecast to 0.3%.

- Date: 2020-05-28 · published 2020-05-28T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/53368-bok-cuts-rates-to-0-50-sees-biggest-gdp-contraction-since-asian-financial
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Lower Korean rates and a deeper recession weaken the won and reduce Korean demand for imported feed and food, though Korea is a small buyer relative to China. The price impact on grain and oilseed markets is limited.

## Read by commodity

- USDKRW: bullish ▲

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/05/28/bok-cuts-rates-to-0-50-sees-biggest-gdp-contraction-since-asian-financial-crisis-krw-off-lows/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.