LONG TERM HURT: South Korea’s central bank warned that Europe’s debt crisis and weak growth in other parts of the world could result in the nation’s economy underperforming for an extended period. Officials said the recently lowered forecast for economic growth of 3 percent this year may not be achievable.
RATE CUTS EXPECTED: The pessimistic assessment reinforced views that the Bank of Korea is likely to cut interest rates again later this year to boost domestic demand and offset the impact of waning exports. It left its key interest rate unchanged at 3 percent Thursday.
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