South Korea reduces interest rates unexpectedly
South Korea's central bank unexpectedly cut interest rates by a quarter percentage points to an all-time low of 3.25% on Thursday to boost the sluggish economy. The central bank said that slowing exports and depressed consumption were posing a serious threat to the economy. But many economists had expected central bank to hold interest rates steady this month. Core inflation, which excludes food and energy costs and is monitored by central bank, accelerated to a 19-month high of 3.4% in October, nearing the bank's 3.5% stated limit. Separately, South Korea's unemployment rate soared to 3.3% in October from 3.2% recorded in September due to fewer jobs in retail and wholesale shops, hotels, agriculture and fishery. The National Statistical Office said that the number of unemployed rose by 3.3% to 772'000 people in October.