SEOUL: South Korean central bank on Thursday lowered its growth forecast for the economy in 2019 by 0.1 percentage point to 2.5 percent.
Bank of Korea (BOK) Governor Lee Ju-yeol told a press conference that the bank's growth outlook was cut to 2.5 percent from 2.6 percent estimated three months earlier, reports Xinhua.Outlook for this year's consumer price inflation was revised down from 1.4 percent to 1.1 percent.
The downward revisions came after the BOK decided to keep the benchmark interest rate unchanged at 1.75 percent.
Lee forecast that the economy's growth momentum would be restored on an expanded fiscal expenditure and the moderate pace of export and investment slowdown, though the growth forecast was lowered this month.
The BOK's revised growth forecast was lower than the South Korean government's growth target of 2.6 percent to 2.7 percent this year. The International Monetary Fund (IMF) set its growth outlook at 2.6 percent.
The finance ministry planned to submit an extra budget plan of less than 7 trillion won (6.2 billion U.S. dollars) later this month to the National Assembly, in a bid to help bolster the lackluster economy.