Anchor: The Bank of Korea kept its benchmark interest rate steady at a record-low one-point-25 percent. The central bank also lowered its economic growth forecast for this year by zero-point-one percentage point to two-point-seven percent, as the nation struggles with restructuring efforts in the shipbuilding and shipping industries and a slowdown in China.
Our Kim In-kyung has more.
 
Report: South Korea's central bank has maintained its benchmark interest rate at the record-low level of one-point-25 percent.
 
Following its monthly monetary policy meeting on Thursday, the Bank of Korea(BOK) also lowered its economic growth forecast for this year from two-point-eight percent to two-point-seven percent.
 
It was the second cut in three months after lowering the growth estimate from three percent in April. A slowdown in China has weakened the nation's exports while a recovery in production and consumption remains feeble.
 
The government plans to allocate a supplementary budget of ten trillion won in the second half, but the impact on the economy remains to be seen.
 
Uncertainties are only expected to grow in the second half as corporate restructuring in the financially-troubled shipbuilding and shipping industries begins in earnest, while concerns stemming from Brexit are likely to overshadow the global economy for some time.
 
For now, the central bank is taking a wait-and-see approach as it observes the effects of a surprise cut of 25 basis points in the key rate last month.
 
However, many analysts believe that the BOK will lower rates further this year considering the weak economy. They say that the BOK won't have a choice if restructuring leads to massive unemployment and growth in non-performing loans at banks.
 
Household debt, which has continued to climb sharply despite tougher screenings for loans, had made a further rate cut difficult. But BOK Governor Lee Ju-yeol said Thursday that the sharp increase is likely to calm down.
Kim In-kyung, KBS World Radio News.