The Bank of Korea (BOK) has projected that four cuts of its key interest rates since August of last year will increase the nation's gross domestic product by zero-point-18 percentage points.

In its BOK’s monetary policy report to the parliament, the central bank said that the previous four rate cuts will raise the country’s GDP and inflation this year by zero-point-18 percentage points and zero-point-09 percentage points, respectively.

The bank assessed that the rate cuts first took effect in the financial market, citing drops in the banks’ loan and deposit rates and increased trade volumes in the stock market.

The central bank expects the effects of the cuts to spread into the real economy and help recover domestic consumption.