S.Korea interest rates unchanged at 1.25%
SEOUL • South Korea's central bank held its benchmark interest rate unchanged at 1.25 per cent yesterday while raising its growth forecast as exports and plans for fiscal stimulus add to optimism for the economy.
The Bank of Korea's governor Lee Ju Yeol said gross domestic product will expand 2.8 per cent this year, close to the country's potential growth rate.
He said inflation will fluctuate around 2 per cent for some time.
British banks plan to cut back consumer lending
LONDON • British banks expect to cut back consumer lending in the coming months as they turn more cautious about the economy, the Bank of England said yesterday.
The central bank's quarterly Credit Conditions Survey found banks planned to tighten their credit standards in the July to September period for unsecured borrowing. Banks are expected to provide fewer mortgages to highly indebted home buyers in the third quarter.