Policy Response to COVID-19

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  2. Policy Response to COVID-19

★ Bank of Korea announces 50bp Base Rate cut and measures to stabilize economic and financial conditions

Monetary Policy Department (82-2-759-4066) 2020.03.16 1282

The Monetary Policy Board of the Bank of Korea decided today to lower the Base Rate by 50 basis points, from 1.25% to 0.75%, effective March 17, 2020. 

In a related set of actions, the Board has decided to lower the interest rate on the Bank Intermediated Lending Support Facility from 0.50-0.75% to 0.25%, effective March 17, 2020. 

To manage liquidity in the financial market at a sufficient level, the Board will also broaden the eligible collateral for open market operations to include debentures issued by banking institutions.