South Korea cuts interest rate to record low

HONG KONG (MarketWatch) — The Bank of Korea slashed interest rates by half a percentage point Friday, bringing its key rate to record low 2.5% in an effort to prop up an economy suffering from a collapse in exports.
The rate cut adds to the four other reductions in the past three months, bringing the cumulative easing since October by the central bank to 275 basis points.
The rate cut was widely expected and inline with analysts polled by Dow Jones Newswires.
“The local economy is slowing very rapidly as export growth and domestic demand continues to decline,” the central bank said in a statement Friday.
The central bank warned of more slowing in the months ahead as the U.S. and euro zone economies fall further into recession.
The rate cut follows data showing South Korean exports contracted 17.4% in December from a year earlier. Industrial production also was weaker in November, marking it fifth straight month of deceleration.

Remember these times folks, cause you will never see rates this low again in your lifetime after inflation gets ignited.