News Summary: Bank of Korea trims growth outlook

News Summary: South Korea's central bank trims 2013 growth outlook, holds key rate steady

Associated Press
News Summary: Bank of Korea trims growth outlook
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Kim Choong-soo, governor of the Bank of Korea, listens to a reporter's question during a press conference as Kim announce the benchmark call rate at the headquarters of the Bank of Korea in Seoul, South Korea, Friday, Jan. 11, 2013. South Korea's central bank cut its forecast for the country's economic growth this year due to slower corporate investment and uncertainties about the global economy. (AP Photo/Ahn Young-joon)

SLOWER GROWTH: South Korea's central bank cut its forecast for the country's economic growth this year to 2.8 percent due to slower corporate investment, weak demand from Europe and an uncertain recovery in the U.S. Its October forecast was for 3.2 percent growth.

KEY RATES STEADY: But the Bank of Korea held its key interest rate steady at 2.75 percent for a third month. Gov. Kim Choong-soo said the economy is still on track for growth so a rate cut wasn't justified.

FEW SURPRISED: The rate decision was widely expected by economists. But a few thought the steep fall of the Japanese yen in recent weeks and the rise of South Korean won could prompt a rate cut to slow the won's rise.

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