BOK expects extra budget to boost S. Korean economy by 0.2% points

The Bank of Korea believes the government-proposed supplementary budget will boost South Korea's economic growth by 0-point-2 percentage point this year.

Speaking at the European Central Bank Forum in Portugal on Tuesday Governor Rhee Chang-yong also revealed that the BOK remains in a rate-cutting cycle after lowering rates by one percentage point since last October.

He nonetheless stressed that the timing and size of future rate cuts will take into account financial stability risks including rising household debt.