DHAKA: South Korea’s central bank has cut interest rates to a record low.

The move is seen as an attempt to stem the economic fall out from an outbreak of the Middle East Respiratory Syndrome (MERS).

Its policy rate was reduced by 0.25 percent points to 1.5 percent - its fourth rate cut in less than a year, reports the BBC.

Nine people have died in Asia’s fourth largest economy since the outbreak of MERS was reported late last month.

This is also the seventh cut since its easing cycle began three years ago.

“We were expecting a rate cut in July, or at least within the third quarter, so we believe the (Bank of Korea’s) decision was affected by the MERS outbreak,” said Kim Myong-Sil, an analyst at KB Investment & Securities.

BDST: 1022 HRS, JUNE 11, 2015
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