SEOUL (Reuters) – Deflation pressure is the biggest domestic risk facing South Korea’s economy and its central bank should cut interest rates aggressively, a senior economist at credit rating agency S&P told Reuters on Wednesday.
Shaun Roache, Asia Pacific chief economist at S&P Global Ratings, also said during an interview in Seoul that the rating agency would trim its forecasts on South Korea’s economic growth for this year and 2020 as soon as next week.
S - P - Forecasts - South - Korea
He said S&P’s revised forecasts for South Korea’s economic growth would be around 1.9% for this year, versus 2.0% seen previously, and about 2.2% for next year, down sharply from 2.6% seen before.
“I think the main domestic risk to Korea is low inflation, and deflation,” Roache said. “I think it is a problem that the BOK (Bank of Korea) is...
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