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Bank of Korea slashes interest rate

Bank of Korea slashes interest rate

South Korea's central bank has slashed its key interest rate for the second time this month amid the global financial crisis.
The Bank of Korea said it lowered its benchmark seven-day repurchase rate from 5 percent to 4.25 percent at a meeting Monday.
The decision came as South Korean markets suffer due to the world financial turmoil. The country's benchmark stock index lost one-fifth of its value last week, its worst weekly performance on record. The won currency has also fallen sharply.
Monday's decision came at a rare interim policy meeting and follows a cut of a quarter percentage point at a regular policy meeting earlier this month.