BOK's Lee sees 2019 GDP at 2.2%

Bank of Korea's Chief Lee sees South Korea's economy expanding 2.2% in 2019 as opposed to the previous forecast of 2.5% growth. 

The central bank cut rates today for the first time since 2016. Many believe the rate cut has come earlier than expected due to growing worry about trade row with Japan. 

Earlier this month, Japan imposed stricter controls on its exports to South Korea of materials necessary to produce memory chips and display panels that influence the manufacturing of smartphones, TVs and other tech products.

Key quotes (Source: Reuters)

• Sees 2019 inflation at 0.7% vs 1.1% seen previously.
• 2019-2020 potential growth rate seen at 2.5-2.6%.
• Thursday's rate decision was not unanimous.
• Board member lee il-houng was dissenter to thursday's rate decision.
• Japan's export curbs was one factor to economic assessment.
• Expanded effects from japan's export curbs won't be small.
• Premature to say how much japan's export curbs will impact local economy.
• Has some policy room left.
• No comment on how future interest rate policy will influence won.
• Effect of rate cut could be limited compared to past cases.
• Will continue to pay attention to financial stability.